Child Support, Pensions and Social Security Act 2000 · Child Support, Pensions and Social Security Act 2000 c. 19 iii Chapter II Occupational and Personal Pension Schemes Selection

Child Support, Pensions andSocial Security Act 2000

CHAPTER 19

ARRANGEMENT OF SECTIONS

Part I

Child Support

Maintenance calculations and interim and default maintenance decisionsSection

1. Maintenance calculations and terminology.2. Applications under section 4 of the Child Support Act 1991.3. Applications by persons claiming or receiving benefit.4. Default and interim maintenance decisions.

Applications for a variation

5. Departure from usual rules for calculating maintenance.6. Applications for a variation: further provisions.7. Variations: revision and supersession.

Revision and supersession of decisions

8. Revision of decisions.9. Decisions superseding earlier decisions.

Appeals

10. Appeals to appeal tribunals.11. Redetermination of appeals.

Information

12. Information required by Secretary of State.13. Information— offences.14. Inspectors.

Parentage

15. Presumption of parentage in child support cases.

ii c. 19 Child Support, Pensions and Social Security Act 2000

Disqualification from drivingSection

16. Disqualification from driving.17. Civil imprisonment: Scotland.

Financial penalties

18. Financial penalties.19. Reduced benefit decisions.

Miscellaneous

20. Voluntary payments.21. Recovery of child supportmaintenance by deduction frombenefit.22. Jurisdiction.23. Abolition of the child maintenance bonus.24. Periodical reviews.25. Regulations.26. Amendments.27. Temporary compensation payment scheme.28. Pilot schemes.29. Interpretation, transitional provisions, savings, etc.

Part II

Pensions

Chapter I

State pensions

State second pension

30. Earnings from which pension derived.31. Calculation.32. Calculation of Category B retirement pension.33. Revaluation.34. Report of Government Actuary: rebates etc.35. Supplementary.

Report on pension uprating

36. Report on cost of pension uprating in line with general earningslevel.

Earnings factors

37. Revaluation of earnings factors.38. Modification of earnings factors.

Preservation of rights in respect of additional pensions

39. Preservation of rights in respect of additional pensions.

Other provisions

40. Home responsibilities protection.41. Sharing of state scheme rights.42. Disclosure of state pension information.

iiic. 19Child Support, Pensions and Social Security Act 2000

Chapter II

Occupational and Personal Pension Schemes

Selection of trustees and of directors of corporate trusteesSection

43. Member-nominated trustees.44. Corporate trustees.45. Employer’s proposals for selection of trustees or directors.46. Non-compliance in relation to arrangements or proposals.

Winding-up of schemes

47. Information to be given to the Authority.48. Modification of scheme to secure winding-up.49. Reports about winding-up.50. Directions for facilitating winding-up.

Other provisions

51. Restriction on index-linking where annuity tied to investments.52. Information for members of schemes etc.53. Jurisdiction of the Pensions Ombudsman.54. Investigations by the Pensions Ombudsman.55. Prohibition on different rules for overseas residents etc.56. Miscellaneous amendments and alternative to anti-franking rules.

Chapter III

War Pensions

57. Rights of appeal.58. Time limit for appeals.59. Matters relevant on appeal to Pensions Appeal Tribunal.60. Constitution and procedure of Pensions Appeal Tribunals.61. Composition of central advisory committee.

Part III

Social Security

Loss of benefit

62. Loss of benefit for breach of community order.63. Loss of joint-claim jobseeker’s allowance.64. Information provision.65. Loss of benefit regulations.66. Appeals relating to loss of benefit.

Investigation powers

67. Investigation powers.

Housing benefit and council tax benefit etc.

68. Housing benefit and council tax benefit: revisions and appeals.69. Discretionary financial assistance with housing.70. Grants towards cost of discretionary housing payments.71. Recovery of housing benefit.

iv c. 19 Child Support, Pensions and Social Security Act 2000

Child benefitSection

72. Child benefit disregards.

Social Security Advisory Committee

73. Social Security Advisory Committee.

Part IV

National Insurance Contributions

Great Britain

74. Contributions in respect of benefits in kind: Great Britain.75. Third party providers of benefits in kind: Great Britain.76. Collection etc. of NICs: Great Britain.77. Liability of earner for secondary contributions: Great Britain.

Northern Ireland

78. Contributions in respect of benefits in kind: Northern Ireland.79. Third party providers of benefits in kind: Northern Ireland.80. Collection etc. of NICs: Northern Ireland.81. Liability of earner for secondary contributions: Northern Ireland.

Part V

Miscellaneous and supplemental

Miscellaneous

82. Tests for determining parentage.83. Declarations of status.

Supplemental

84. Expenses.85. Repeals.86. Commencement and transitional provisions.87. Short title and extent.

Schedules:

Schedule 1—Substituted Part I of Schedule 1 to the ChildSupport Act 1991.

Schedule 2—Substituted Schedules 4A and 4B to the 1991 Act.Part I—Substituted Schedule 4A.

Part II—Substituted Schedule 4B.Schedule 3—Amendment of enactments relating to child

support.Schedule 4—Additional pension.

Part I—The amount.Part II—Surplus earnings factor.

Part III—Contracted-out employment etc.Part IV—Other cases.

Schedule 5—Pensions: miscellaneous amendments andalternative to anti-franking rules.

Part I—Miscellaneous amendments.Part II—Alternative to anti-franking rules.

Schedule 6—Social security investigation powers.

vc. 19Child Support, Pensions and Social Security Act 2000

Schedule 7—Housing benefit and council tax benefit: revisionsand appeals.

Schedule 8—Declarations of status: consequentialamendments.

Schedule 9—Repeals and revocations.Part I—Child support.

Part II—State pensions.Part III—Occupational and personal pension schemes.Part IV—War pensions.Part V—Loss of benefit.

Part VI—Investigation powers.Part VII—Housing Benefit and Council Tax Benefit.

Part VIII—NICs in respect of benefits in kind.Part IX—Tests for determining parentage and declarations

of status.

ELIZABETH II c. 19

Child Support, Pensions andSocial Security Act 2000

2000 CHAPTER 19

An Act to amend the law relating to child support; to amend thelaw relating to occupational and personal pensions and warpensions; to amend the law relating to social security benefitsand social security administration; to amend the law relating tonational insurance contributions; to amend Part III of theFamily Law Reform Act 1969 and Part III of the Family LawAct 1986; and for connected purposes. [28th July 2000]

Be it enacted by the Queen’s most Excellent Majesty, by and withthe advice and consent of the Lords Spiritual and Temporal, andCommons, in this present Parliament assembled, and by the

authority of the same, as follows:—

Part I

Child Support

Maintenance calculations and interim and default maintenance decisions

1.—(1) In the Child Support Act 1991 (“the 1991 Act”), for section 11 Maintenancecalculations and(maintenance assessments) there shall be substituted—terminology.

“Maintenance 11.—(1) An application for a maintenance calculation 1991 c. 48.calculations. made to the Secretary of State shall be dealt with by him in

accordance with the provision made by or under this Act.

(2) The Secretary of State shall (unless he decides notto make a maintenance calculation in response to theapplication, or makes a decision under section 12)determine the application by making a decision under thissection about whether any child support maintenance ispayable and, if so, how much.

(3) Where—

(a) a parent is treated under section 6(3) as havingapplied for a maintenance calculation; but

2 c. 19 Child Support, Pensions and Social Security Act 2000

Part I(b) the Secretary of State becomes aware before

determining the application that the parent hasceased to fall within section 6(1),

he shall, subject to subsection (4), cease to treat thatparent as having applied for a maintenance calculation.

(4) If it appears to the Secretary of State thatsubsection (10) of section 4 would not have prevented theparent with care concerned from making an applicationfor a maintenance calculation under that section heshall—

(a) notify her of the effect of this subsection; and

(b) if, before the end of the period of one monthbeginning with the day on which notice was sentto her, she asks him to do so, treat her as havingapplied not under section 6 but under section 4.

(5) Where subsection (3) applies but subsection (4)does not, the Secretary of State shall notify—

(a) the parent with care concerned; and

(b) the non-resident parent (or alleged non-residentparent), where it appears to him that that personis aware that the parent with care has beentreated as having applied for a maintenancecalculation.

(6) The amount of child support maintenance to befixed by a maintenance calculation shall be determined inaccordance with Part I of Schedule 1 unless an applicationfor a variation has been made and agreed.

(7) If the Secretary of State has agreed to a variation,the amount of child support maintenance to be fixed shallbe determined on the basis he determines under section28F(4).

(8) Part II of Schedule 1 makes further provision withrespect to maintenance calculations.”

(2) In the 1991 Act—

(a) for “maintenance assessment”, wherever it occurs, there shall besubstituted “maintenance calculation”; and

(b) for “assessment” (or any variant of that term), wherever itoccurs, there shall be substituted “calculation” (or thecorresponding variant) preceded, where appropriate, by “a”instead of “an”.

(3) For Part I of Schedule 1 to the 1991 Act, there shall be substitutedthe Part I set out in Schedule 1 to this Act.

2.—(1) In section 4 of the 1991 Act (child support maintenance),Applicationsunder section 4 of subsection (10) shall be amended as follows.the Child SupportAct 1991. (2) In paragraph (a), after “maintenance order” there shall be inserted

“made before a prescribed date”.

(3) After paragraph (a), there shall be inserted—

3c. 19Child Support, Pensions and Social Security Act 2000

Part I“(aa) a maintenance order made on or after the date prescribed

for the purposes of paragraph (a) is in force in respect ofthem, but has been so for less than the period of one yearbeginning with the date on which it was made; or”.

3. For section 6 of the 1991 Act (applications by those receiving benefit) Applications bypersons claimingthere shall be substituted—or receivingbenefit.“Applications by 6.—(1) This section applies where income support, an

those claiming or income-based jobseeker’s allowance or any other benefitreceiving benefit. of a prescribed kind is claimed by or in respect of, or paid

to or in respect of, the parent of a qualifying child who isalso a person with care of the child.

(2) In this section, that person is referred to as “theparent”.

(3) The Secretary of State may—

(a) treat the parent as having applied for amaintenance calculation with respect to thequalifying child and all other children of thenon-resident parent in relation to whom theparent is also a person with care; and

(b) take action under this Act to recover from thenon-resident parent, on the parent’s behalf, thechild support maintenance so determined.

(4) Before doing what is mentioned in subsection (3),the Secretary of State must notify the parent in writing ofthe effect of subsections (3) and (5) and section 46.

(5) The Secretary of State may not act undersubsection (3) if the parent asks him not to (a requestwhich need not be in writing).

(6) Subsection (1) has effect regardless of whether anyof the benefits mentioned there is payable with respect toany qualifying child.

(7) Unless she has made a request under subsection (5),the parent shall, so far as she reasonably can, comply withsuch regulations as may be made by the Secretary of Statewith a view to the Secretary of State’s being provided withthe information which is required to enable—

(a) the non-resident parent to be identified or traced;

(b) the amount of child support maintenancepayable by him to be calculated; and

(c) that amount to be recovered from him.

(8) The obligation to provide information which isimposed by subsection (7)—

(a) does not apply in such circumstances as may beprescribed; and

(b) may, in such circumstances as may beprescribed, be waived by the Secretary of State.

02-08-00 09:47:58ch1900c01a ACT Unit: pag1 RA Proof, 24.07.2000


Part I(9) If the parent ceases to fall within subsection (1), she

may ask the Secretary of State to cease acting under thissection, but until then he may continue to do so.

(10) The Secretary of State must comply with anyrequest under subsection (9) (but subject to anyregulations made under subsection (11)).

(11) The Secretary of State may by regulations makesuch incidental or transitional provision as he thinksappropriate with respect to cases in which he is askedunder subsection (9) to cease to act under this section.

(12) The fact that a maintenance calculation is in forcewith respect to a person with care does not prevent themaking of a new maintenance calculation with respect toher as a result of the Secretary of State’s acting undersubsection (3).”

4. For section 12 of the 1991 Act (interim maintenance assessments)Default andinterim there shall be substituted—maintenancedecisions. “Default and 12.—(1) Where the Secretary of State—

interim(a) is required to make a maintenance calculation;maintenance

ordecisions.

(b) is proposing to make a decision under section 16or 17,

and it appears to him that he does not have sufficientinformation to enable him to do so, he may make adefault maintenance decision.

(2) Where an application for a variation has beenmadeunder section 28A(1) in connection with an applicationfor a maintenance calculation (or in connection with suchan application which is treated as having been made), theSecretary of State may make an interim maintenancedecision.

(3) The amount of child support maintenance fixed byan interim maintenance decision shall be determined inaccordance with Part I of Schedule 1.

(4) The Secretary of State may by regulations makeprovision as to default and interim maintenancedecisions.

(5) The regulations may, in particular, make provisionas to—

(a) the procedure to be followed in making a defaultor an interim maintenance decision; and

(b) a default rate of child support maintenance toapply where a default maintenance decision ismade.”



Part IApplications for a variation

5.—(1) The 1991 Act shall be amended as follows. Departure fromusual rules for

(2) For sections 28A to 28C (which deal respectively with applications calculatingfor departure directions, their preliminary consideration, and the maintenance.imposition of a regular payments condition) there shall be substituted—

“Variations

Application for 28A.—(1) Where an application for a maintenancevariation of calculation is made under section 4 or 7, or treated asusual rules for made under section 6, the person with care or the non-calculating

resident parent or (in the case of an application undermaintenance.section 7) either of them or the child concerned may applyto the Secretary of State for the rules by which thecalculation is made to be varied in accordance with thisAct.

(2) Such an application is referred to in this Act as an“application for a variation”.

(3) An application for a variation may be made at anytime before the Secretary of State has reached a decision(under section 11 or 12(1)) on the application for amaintenance calculation (or the application treated ashaving been made under section 6).

(4) A person who applies for a variation—

(a) need not make the application in writing unlessthe Secretary of State directs in any case that hemust; and

(b) must say upon what grounds the application ismade.

(5) In other respects an application for a variation is tobe made in such manner as may be prescribed.

(6) Schedule 4A has effect in relation to applicationsfor a variation.

Preliminary 28B.—(1) Where an application for a variation hasconsideration of been duly made to the Secretary of State, he may give it aapplications. preliminary consideration.

(2) Where he does so he may, on completing thepreliminary consideration, reject the application (andproceed to make his decision on the application for amaintenance calculation without any variation) if itappears to him—

(a) that there are no grounds on which he couldagree to a variation;

(b) that he has insufficient information to make adecision on the application for the maintenancecalculation under section 11 (apart from anyinformation needed in relation to theapplication for a variation), and therefore thathis decision would be made under section12(1); or



Part I(c) that other prescribed circumstances apply.

Imposition of 28C.—(1) Where—regular

(a) an application for a variation ismade by the non-paymentsresident parent; andcondition.

(b) the Secretary of State makes an interimmaintenance decision,

the Secretary of State may also, if he has completed hispreliminary consideration (under section 28B) of theapplication for a variation and has not rejected it underthat section, impose on the non-resident parent one of theconditions mentioned in subsection (2) (a “regularpayments condition”).

(2) The conditions are that—

(a) the non-resident parent must make the paymentsof child support maintenance specified in theinterim maintenance decision;

(b) the non-resident parent must make such lesserpayments of child support maintenance as maybe determined in accordance with regulationsmade by the Secretary of State.

(3) Where the Secretary of State imposes a regularpayments condition, he shall give written notice of theimposition of the condition and of the effect of failure tocomply with it to—

(a) the non-resident parent;

(b) all the persons with care concerned; and

(c) if the application for themaintenance calculationwas made under section 7, the child who madethe application.

(4) A regular payments condition shall cease to haveeffect—

(a) when the Secretary of State has made a decisionon the application for a maintenancecalculation under section 11 (whether he agreesto a variation or not);

(b) on the withdrawal of the application for avariation.

(5) Where a non-resident parent has failed to complywith a regular payments condition, the Secretary of Statemay in prescribed circumstances refuse to consider theapplication for a variation, and instead reach his decisionunder section 11 as if no such application had been made.

(6) The question whether a non-resident parent hasfailed to comply with a regular payments condition is tobe determined by the Secretary of State.

(7) Where the Secretary of State determines that a non-resident parent has failed to comply with a regularpayments condition he shall give written notice of hisdetermination to—



Part I(a) that parent;

(b) all the persons with care concerned; and

(c) if the application for themaintenance calculationwas made under section 7, the child who madethe application.”

(3) In section 28D (determination of applications)—

(a) for subsection (1) there shall be substituted—

“(1) Where an application for a variation has not failed, theSecretary of State shall, in accordance with the relevant provisionsof, or made under, this Act—

(a) either agree or not to a variation, and make a decisionunder section 11 or 12(1); or

(b) refer the application to an appeal tribunal for the tribunalto determine what variation, if any, is to be made.”;

(b) in each of subsections (2) and (3), for “an application for adeparture direction” there shall be substituted “an applicationfor a variation”; and

(c) in subsection (2), in paragraph (a) “lapsed or” shall be omitted,at the end of paragraph (b) “or” shall be inserted, and after thatparagraph there shall be inserted—

“(c) the Secretary of State has refused to consider it undersection 28C(5).”

(4) In section 28E (matters to be taken into account)—

(a) in subsections (1), (3) and (4), for “any application for adeparture direction” (wherever appearing) there shall besubstituted “whether to agree to a variation”; and

(b) in subsection (4)(a), for “a departure direction were made” thereshall be substituted “the Secretary of State agreed to avariation”.

(5) For section 28F (departure directions) there shall be substituted—

“Agreement to a 28F.—(1) The Secretary of State may agree to avariation. variation if—

(a) he is satisfied that the case is one which fallswithin one or more of the cases set out in Part Iof Schedule 4B or in regulations made underthat Part; and

(b) it is his opinion that, in all the circumstances ofthe case, it would be just and equitable to agreeto a variation.

(2) In considering whether it would be just andequitable in any case to agree to a variation, the Secretaryof State—

(a) must have regard, in particular, to the welfare ofany child likely to be affected if he did agree toa variation; and



Part I(b) must, or as the case may be must not, take any

prescribed factors into account, or must takethem into account (or not) in prescribedcircumstances.

(3) The Secretary of State shall not agree to a variation(and shall proceed to make his decision on the applicationfor a maintenance calculation without any variation) if heis satisfied that—

(a) he has insufficient information to make adecision on the application for the maintenancecalculation under section 11, and therefore thathis decision would be made under section12(1); or

(b) other prescribed circumstances apply.

(4) Where the Secretary of State agrees to a variation,he shall—

(a) determine the basis on which the amount of childsupport maintenance is to be calculated inresponse to the application for a maintenancecalculation (including an application treated ashaving been made); and

(b) make a decision under section 11 on that basis.

(5) If the Secretary of State has made an interimmaintenance decision, it is to be treated as having beenreplaced by his decision under section 11, and except inprescribed circumstances any appeal connected with it(under section 20) shall lapse.

(6) In determining whether or not to agree to avariation, the Secretary of State shall comply withregulations made under Part II of Schedule 4B.”

6.—(1) For Schedule 4A to the 1991 Act there shall be substituted theApplications for avariation: further Schedule 4A set out in Part I of Schedule 2.provisions.

(2) For Schedule 4B to that Act there shall be substituted the Schedule4B set out in Part II of Schedule 2.

7. For section 28G of the 1991 Act (effect and duration of departureVariations:revision and directions) there shall be substituted—supersession.

“Variations: 28G.—(1) An application for a variation may also berevision and made when a maintenance calculation is in force.supersession.

(2) The Secretary of State may by regulationsprovide for—

(a) sections 16, 17 and 20; and

(b) sections 28A to 28F and Schedules 4A and 4B,

to apply with prescribed modifications in relation to suchapplications.

(3) The Secretary of State may by regulations providethat, in prescribed cases (or except in prescribed cases), adecision under section 17 made otherwise than pursuant



Part Ito an application for a variation may be made on the basisof a variation agreed to for the purposes of an earlierdecision without a new application for a variation havingto be made.”

Revision and supersession of decisions

8.—(1) Section 16 of the 1991 Act (revision of decisions) shall be Revision ofdecisions.amended as follows.

(2) In subsection (1), for “of the Secretary of State under section 11, 12or 17” there shall be substituted “to which subsection (1A) applies”.

(3) After subsection (1), there shall be inserted—

“(1A) This subsection applies to—

(a) a decision of the Secretary of State under section 11, 12or 17;

(b) a reduced benefit decision under section 46;

(c) a decision of an appeal tribunal on a referral under section28D(1)(b).

(1B) Where the Secretary of State revises a decision undersection 12(1)—

(a) he may (if appropriate) do so as if he were revising adecision under section 11; and

(b) if he does that, his decision as revised is to be treated as oneunder section 11 instead of section 12(1) (and, inparticular, is to be so treated for the purposes of an appealagainst it under section 20).”

9.—(1) Section 17 of the 1991 Act (decisions superseding earlier Decisionssuperseding earlierdecisions) shall be amended as follows.decisions.

(2) In subsection (1), for paragraph (c) there shall be substituted—

“(c) any reduced benefit decision under section 46;

(d) any decision of an appeal tribunal on a referral undersection 28D(1)(b);

(e) any decision of a Child Support Commissioner on anappeal from such a decision as is mentioned in paragraph(b) or (d).”

(3) For subsection (4) there shall be substituted—

“(4) Subject to subsection (5) and section 28ZC, a decision underthis section shall take effect as from the beginningof themaintenanceperiod in which it is made or, where applicable, the beginning of themaintenance period in which the application was made.

(4A) In subsection (4), a “maintenance period” is (except wherea different meaning is prescribed for prescribed cases) a period ofseven days, the first one beginning on the effective date of the firstdecision made by the Secretary of State under section 11 or (ifearlier) his first default or interim maintenance decision (undersection 12) in relation to the non-resident parent in question, andeach subsequent one beginning on the day after the last day of theprevious one.”



Part IAppeals

10. For section 20 of the 1991 Act (appeals to appeal tribunals) thereAppeals to appealtribunals. shall be substituted—

“Appeals to 20.—(1) A qualifying person has a right of appeal to anappeal tribunals. appeal tribunal against—

(a) a decision of the Secretary of State under section11, 12 or 17 (whether as originally made or asrevised under section 16);

(b) a decision of the Secretary of State not to makea maintenance calculation under section 11 ornot to supersede a decision under section 17;

(c) a reduced benefit decision under section 46;

(d) the imposition (by virtue of section 41A) of arequirement to make penalty payments, or theiramount;

(e) the imposition (by virtue of section 47) of arequirement to pay fees.

(2) In subsection (1), “qualifying person” means—

(a) in relation to paragraphs (a) and (b)—(i) the person with care, or non-resident

parent, with respect to whom the Secretary ofState made the decision, or

(ii) in a case relating to a maintenancecalculation which was applied for undersection 7, either of those persons or the childconcerned;

(b) in relation to paragraph (c), the person in respectof whom the benefits are payable;

(c) in relation to paragraph (d), the parent who hasbeen required to make penalty payments; and

(d) in relation to paragraph (e), the person requiredto pay fees.

(3) A person with a right of appeal under this sectionshall be given such notice as may be prescribed of—

(a) that right; and

(b) the relevant decision, or the imposition of therequirement.

(4) Regulations may make—

(a) provision as to the manner in which, and the timewithin which, appeals are to be brought; and

(b) such provision with respect to proceedingsbefore appeal tribunals as the Secretary of Stateconsiders appropriate.

(5) The regulations may in particular make anyprovision of a kind mentioned in Schedule 5 to the Social1998 c. 14.Security Act 1998.

(6) No appeal lies by virtue of subsection (1)(c) unlessthe amount of the person’s benefit is reduced in



Part Iaccordance with the reduced benefit decision; and thetime within which such an appeal may be brought runsfrom the date of notification of the reduction.

(7) In deciding an appeal under this section, an appealtribunal—

(a) need not consider any issue that is not raised bythe appeal; and

(b) shall not take into account any circumstancesnot obtaining at the time when the Secretary ofState made the decision or imposed therequirement.

(8) If an appeal under this section is allowed, theappeal tribunal may—

(a) itself make such decision as it considersappropriate; or

(b) remit the case to the Secretary of State, togetherwith such directions (if any) as it considersappropriate.”

11. After section 23 of the 1991 Act there shall be inserted— Redeterminationof appeals.

“Redetermination 23A.—(1) This section applies where an application isof appeals. made to a person under section 24(6)(a) for leave to

appeal from a decision of an appeal tribunal.

(2) If the person who constituted, or was the chairmanof, the appeal tribunal considers that the decision waserroneous in law, he may set aside the decision and referthe case either for redetermination by the tribunal or fordetermination by a differently constituted tribunal.

(3) If each of the principal parties to the case expressesthe view that the decision was erroneous in point of law,the person shall set aside the decision and refer the casefor determination by a differently constituted tribunal.

(4) The “principal parties” are—

(a) the Secretary of State; and

(b) those who are qualifying persons for thepurposes of section 20(2) in relation to thedecision in question.”

Information

12. In section 14 of the 1991 Act (information required by the Secretary Informationrequired byof State), in subsection (1), after “such an application” there shall beSecretary of State.inserted “(or application treated as made), or needed for the making of

any decision or in connection with the imposition of any condition orrequirement under this Act,”.

13. After section 14 of the 1991 Act there shall be inserted— Information—offences.

“Information — 14A.—(1) This section applies to—offences.

(a) persons who are required to comply withregulations under section 4(4) or 7(5); and



Part I(b) persons specified in regulations under section

14(1)(a).

(2) Such a person is guilty of an offence if, pursuant toa request for information under or by virtue of thoseregulations—

(a) he makes a statement or representation which heknows to be false; or

(b) he provides, or knowingly causes or knowinglyallows to be provided, a document or otherinformation which he knows to be false in amaterial particular.

(3) Such a person is guilty of an offence if, followingsuch a request, he fails to comply with it.

(4) It is a defence for a person charged with an offenceunder subsection (3) to prove that he had a reasonableexcuse for failing to comply.

(5) A person guilty of an offence under this section isliable on summary conviction to a fine not exceeding level3 on the standard scale.”

14.—(1) Section 15 of the 1991 Act (powers of inspectors) shall beInspectors.amended as follows.

(2) For subsections (1) to (4) there shall be substituted—

“(1) The Secretary of State may appoint, on such terms as hethinks fit, persons to act as inspectors under this section.

(2) The function of inspectors is to acquire information which theSecretary of State needs for any of the purposes of this Act.

(3) Every inspector is to be given a certificate of his appointment.

(4) An inspector has power, at any reasonable time and eitheralone or accompanied by such other persons as he thinks fit, to enterany premises which—

(a) are liable to inspection under this section; and

(b) are premises to which it is reasonable for him to requireentry in order that he may exercise his functions underthis section,

and may there make such examination and inquiry as he considersappropriate.

(4A) Premises liable to inspection under this section are thosewhich are not used wholly as a dwelling house and which theinspector has reasonable grounds for suspecting are—

(a) premises at which a non-resident parent is or has beenemployed;

(b) premises at which a non-resident parent carries out, or hascarried out, a trade, profession, vocation or business;



Part I(c) premises at which there is information held by a person

(“A”) whom the inspector has reasonable grounds forsuspecting has information about a non-resident parentacquired in the course of A’s own trade, profession,vocation or business.”

(3) In subsection (6), for the words from “any person who” to the endof paragraph (d) there shall be substituted “any such person”.

(4) After subsection (10) there shall be inserted—

“(11) In this section, “premises” includes—

(a) moveable structures and vehicles, vessels, aircraft andhovercraft;

(b) installations that are offshore installations for the purposesof the Mineral Workings (Offshore Installations) Act 1971 c. 61.1971; and

(c) places of all other descriptions whether or not occupied asland or otherwise,

and references in this section to the occupier of premises are to beconstrued, in relation to premises that are not occupied as land, asreferences to any person for the time being present at the place inquestion.”

Parentage

15.—(1) In section 26(2) of the 1991 Act (cases in which the Secretary Presumption ofparentage in childof State may assume a person to be the parent of a child for the purposesupport cases.of making a maintenance calculation under thatAct), before Case A there

shall be inserted—

“Case A1

Where—

(a) the child is habitually resident in England and Wales;

(b) the Secretary of State is satisfied that the alleged parent wasmarried to the child’s mother at some time in the periodbeginning with the conception and ending with the birth ofthe child; and

(c) the child has not been adopted.

Case A2

Where—

(a) the child is habitually resident in England and Wales;

(b) the alleged parent has been registered as father of the childunder section 10 or 10A of the Births and Deaths 1953 c. 20.RegistrationAct 1953, or in any register kept under section13 (register of births and still-births) or section 44 (Registerof Corrections Etc) of the Registration of Births, Deaths 1965 c. 49.and Marriages (Scotland) Act 1965, or under Article 14 or18(1)(b)(ii) of the Births and Deaths Registration(Northern Ireland) Order 1976; and S.I. 1976/1041

(N.I. 14).(c) the child has not subsequently been adopted.



Part I

Case A3

Where the result of a scientific test (within the meaning of section27A) taken by the alleged parent would be relevant to determiningthe child’s parentage, and the alleged parent—

(a) refuses to take such a test; or

(b) has submitted to such a test, and it shows that there is noreasonable doubt that the alleged parent is a parent ofthe child.”

(2) In that provision, after Case B there shall be inserted—

“Case B1

Where the Secretary of State is satisfied that the alleged parent isa parent of the child in question by virtue of section 27 or 28 of thatAct (meaning of “mother” and of “father” respectively).”

Disqualification from driving

16.—(1) After section 39 of the 1991 Act there shall be inserted—Disqualificationfrom driving.

“Commitment to 39A.—(1) Where the Secretary of State has sought—prison and

(a) in England and Wales to levy an amount bydisqualificationdistress under this Act; orfrom driving.

(b) to recover an amount by virtue of section 36 or38,

and that amount, or any portion of it, remains unpaid hemay apply to the court under this section.

(2) An application under this section is for whicheverthe court considers appropriate in all the circumstancesof—

(a) the issue of a warrant committing the liableperson to prison; or

(b) an order for him to be disqualified from holdingor obtaining a driving licence.

(3) On any such application the court shall (in thepresence of the liable person) inquire as to—

(a) whether he needs a driving licence to earn hisliving;

(b) his means; and

(c) whether there has been wilful refusal or culpableneglect on his part.

(4) The Secretary of Statemaymake representations tothe court as to whether he thinks it more appropriate tocommit the liable person to prison or to disqualify himfrom holding or obtaining a driving licence; and the liableperson may reply to those representations.

(5) In this section and section 40B, “driving licence”means a licence to drive a motor vehicle granted underPart III of the Road Traffic Act 1988.1988 c. 52.



Part I(6) In this section “the court” means—

(a) in England and Wales, a magistrates’ court;

(b) in Scotland, the sheriff.”

(2) In section 40 of the 1991 Act (commitment to prison), subsections(1) and (2) shall be omitted.

(3) Before section 41 of the 1991 Act there shall be inserted—

“Disqualification 40B.—(1) If, but only if, the court is of the opinion thatfrom driving: there has been wilful refusal or culpable neglect on thefurther part of the liable person, it may—provision.

(a) order him to be disqualified, for such periodspecified in the order but not exceeding twoyears as it thinks fit, from holding or obtaininga driving licence (a “disqualification order”); or

(b) make a disqualification order but suspend itsoperation until such time and on suchconditions (if any) as it thinks just.

(2) The court may not take action under both section40 and this section.

(3) A disqualification order must state the amount inrespect of which it is made, which is to be the aggregateof—

(a) the amount mentioned in section 35(1), or somuch of it as remains outstanding; and

(b) an amount (determined in accordance withregulations made by the Secretary of State) inrespect of the costs of the application undersection 39A.

(4) A court which makes a disqualification order shallrequire the person to whom it relates to produce anydriving licence held by him, and its counterpart (withinthe meaning of section 108(1) of the Road Traffic Act 1988 c. 52.1988).

(5) On an application by the Secretary of State or theliable person, the court—

(a) may make an order substituting a shorter periodof disqualification, or make an order revokingthe disqualification order, if part of the amountreferred to in subsection (3) (the “amount due”)is paid to any person authorised to receive it;and

(b) must make an order revoking thedisqualification order if all of the amount due isso paid.

(6) The Secretary of Statemay make representations tothe court as to the amount which should be paid before itwould be appropriate to make an order revoking thedisqualification order under subsection (5)(a), and theperson liable may reply to those representations.



Part I(7) The Secretary of State may make a further

application under section 39A if the amount due has notbeen paid in full when the period of disqualificationspecified in the disqualification order expires.

(8) Where a court—

(a) makes a disqualification order;

(b) makes an order under subsection (5); or

(c) allows an appeal against a disqualification order,

it shall send notice of that fact to the Secretary of State;and the notice shall contain such particulars and be sentin such manner and to such address as the Secretary ofState may determine.

(9) Where a court makes a disqualification order, itshall also send the driving licence and its counterpart, ontheir being produced to the court, to the Secretary of Stateat such address as he may determine.

(10) Section 80 of the Magistrates’ Courts Act 19801980 c. 43.(application of money found on defaulter) shall apply inrelation to a disqualification order under this section inrelation to a liable person as it applies in relation to theenforcement of a sum mentioned in subsection (1) ofthat section.

(11) The Secretary of State may by regulations makeprovision in relation to disqualification orderscorresponding to the provision he may make undersection 40(11).

(12) In the application to Scotland of this section—

(a) in subsection (2) for “section 40” substitute“section 40A”;

(b) in subsection (3) for paragraph (a) substitute—

“(a) the appropriate amount undersection 38;”;

(c) subsection (10) is omitted; and

(d) for subsection (11) substitute—

“(11) The power of the Court of Session byAct of Sederunt to regulate the procedure andpractice in civil proceedings in the sheriffcourt shall include power to make, in relationto disqualification orders, provisioncorresponding to that which may be made byvirtue of section 40A(8).”

(4) In section 164(5) of the Road Traffic Act 1988 (power of constables1988 c. 52.to require production of driving licence etc.), after “Road TrafficOffenders Act 1988” there shall be inserted “, section 40B of the ChildSupport Act 1991”.

(5) In section 27(3) of the Road Traffic Offenders Act 1988 (offence of1988 c. 53.failing to produce a licence), for the word “then,” there shall be



Part Isubstituted “, or if the holder of the licence does not produce it and itscounterpart as required by section 40B of the Child Support Act 1991, 1991 c. 48.then,”.

17.—(1) In section 40 of the 1991 Act (commitment to prison), for Civilimprisonment:subsections (12) to (14) there shall be substituted—Scotland.

“(12) This section does not apply to Scotland.”

(2) After section 40 there shall be inserted—

“Commitment to 40A.—(1) If, but only if, the sheriff is satisfied that thereprison: Scotland. has been wilful refusal or culpable neglect on the part of

the liable person he may—

(a) issue a warrant for his committal to prison; or

(b) fix a term of imprisonment and postpone theissue of the warrant until such time and on suchconditions (if any) as he thinks just.

(2) A warrant under this section—

(a) shall be made in respect of an amount equal tothe aggregate of—

(i) the appropriate amount under section38; and

(ii) an amount (determined in accordancewith regulations made by the Secretary ofState) in respect of the expenses ofcommitment; and

(b) shall state that amount.

(3) No warrant may be issued under this sectionagainst a person who is under the age of 18.

(4) A warrant issued under this section shall order theliable person—

(a) to be imprisoned for a specified period; but

(b) to be released (unless he is in custody for someother reason) on payment of the amount statedin the warrant.

(5) The maximum period of imprisonment which maybe imposed by virtue of subsection (4) is six weeks.

(6) The Secretary of State may by regulations makeprovision for the period of imprisonment specified in anywarrant issued under this section to be reduced wherethere is part payment of the amount in respect of whichthe warrant was issued.

(7) A warrant issued under this section may be directedto such person as the sheriff thinks fit.

(8) The power of the Court of Session by Act ofSederunt to regulate the procedure and practice in civilproceedings in the sheriff court shall include power tomake provision—

(a) as to the form of any warrant issued under thissection;



Part I(b) allowing an application under this section to be

renewed where no warrant is issued or term ofimprisonment is fixed;

(c) that a statement in writing to the effect thatwages of any amount have been paid to theliable person during any period, purporting tobe signed by or on behalf of his employer, shallbe sufficient evidence of the facts stated;

(d) that, for the purposes of enabling an inquiry tobe made as to the liable person’s conduct andmeans, the sheriff may issue a citation to him toappear before the sheriff and (if he does notobey) may issue a warrant for his arrest;

(e) that for the purpose of enabling such an inquiry,the sheriff may issue a warrant for the liableperson’s arrest without issuing a citation;

(f) as to the execution of a warrant of arrest.”

Financial penalties

18.—(1) In section 41 of the 1991 Act (arrears of child supportFinancialpenalties. maintenance), subsections (3) to (5) (which provide for the payment of

interest on arrears) shall cease to have effect.

(2) For section 41A of the 1991 Act (arrears: alternative to interestpayments) there shall be substituted—

“Penalty 41A.—(1) The Secretary of State may by regulationspayments. make provision for the payment to him by non-resident

parents who are in arrears with payments of child supportmaintenance of penalty payments determined inaccordance with the regulations.

(2) The amount of a penalty payment in respect of anyweek may not exceed 25% of the amount of child supportmaintenance payable for that week, but otherwise is to bedetermined by the Secretary of State.

(3) The liability of a non-resident parent to make apenalty payment does not affect his liability to pay thearrears of child support maintenance concerned.

(4) Regulations under subsection (1) may, inparticular, make provision—

(a) as to the time at which a penalty payment is to bepayable;

(b) for the Secretary of State to waive a penaltypayment, or part of it.

(5) The provisions of this Act with respect to—

(a) the collection of child support maintenance;

(b) the enforcement of an obligation to pay childsupport maintenance,

apply equally (with any necessary modifications) topenalty payments payable by virtue of regulations underthis section.



Part I(6) The Secretary of State shall pay penalty payments

received by him into the Consolidated Fund.”

19. For section 46 of the 1991 Act (failure to comply with obligations Reduced benefitdecisions.imposed by section 6) there shall be substituted—

“Reduced 46.—(1) This section applies where any person (“thebenefit decisions. parent”)—

(a) has made a request under section 6(5);

(b) fails to comply with any regulation made undersection 6(7); or

(c) having been treated as having applied for amaintenance calculation under section 6,refuses to take a scientific test (within themeaning of section 27A).

(2) The Secretary of State may serve written notice onthe parent requiring her, before the end of a specifiedperiod—

(a) in a subsection (1)(a) case, to give him herreasons for making the request;

(b) in a subsection (1)(b) case, to give him herreasons for failing to do so; or

(c) in a subsection (1)(c) case, to give himher reasonsfor her refusal.

(3) When the specified period has expired, theSecretary of State shall consider whether, having regardto any reasons given by the parent, there are reasonablegrounds for believing that—

(a) in a subsection (1)(a) case, if the Secretary ofState were to do what is mentioned in section6(3);

(b) in a subsection (1)(b) case, if she were to berequired to comply; or

(c) in a subsection (1)(c) case, if she took thescientific test,

there would be a risk of her, or of any children living withher, suffering harm or undue distress as a result of histaking such action, or her complying or taking the test.

(4) If the Secretary of State considers that there aresuch reasonable grounds, he shall—

(a) take no further action under this section inrelation to the request, the failure or the refusalin question; and

(b) notify the parent, in writing, accordingly.

(5) If the Secretary of State considers that there are nosuch reasonable grounds, he may, except in prescribedcircumstances, make a reduced benefit decision withrespect to the parent.



Part I(6) In a subsection (1)(a) case, the Secretary of State

may from time to time serve written notice on the parentrequiring her, before the end of a specified period—

(a) to state whether her request under section 6(5)still stands; and

(b) if so, to give him her reasons for maintaining herrequest,

and subsections (3) to (5) have effect in relation to such anotice and any response to it as they have effect in relationto a notice under subsection (2)(a) and any response to it.

(7) Where the Secretary of State makes a reducedbenefit decision he must send a copy of it to the parent.

(8) A reduced benefit decision is to take effect on suchdate as may be specified in the decision.

(9) Reasons given in response to a notice undersubsection (2) or (6) need not be given inwriting unless theSecretary of State directs in any case that they must.

(10) In this section—

(a) “comply” means to comply with the requirementor with the regulation in question; and“complied” and “complying” are to beconstrued accordingly;

(b) “reduced benefit decision” means a decision thatthe amount payable by way of any relevantbenefit to, or in respect of, the parent concernedbe reduced by such amount, and for suchperiod, as may be prescribed;

(c) “relevant benefit” means income support or anincome-based jobseeker’s allowance or anyother benefit of a kind prescribed for thepurposes of section 6; and

(d) “specified”, in relation to a notice served underthis section, means specified in the notice; andthe period to be specified is to be determined inaccordance with regulations made by theSecretary of State.”

Miscellaneous

20.—(1) After section 28I of the 1991 Act there shall be inserted—Voluntarypayments.

“Voluntary payments

Voluntary 28J.—(1) This section applies where—payments.

(a) a person has applied for a maintenancecalculation under section 4(1) or 7(1), or istreated as having applied for one by virtue ofsection 6;

(b) the Secretary of State has neither made adecision under section 11 or 12 on theapplication, nor decided not to make amaintenance calculation; and



Part I(c) the non-resident parent makes a voluntary

payment.

(2) A “voluntary payment” is a payment—

(a) on account of child support maintenance whichthe non-resident parent expects to become liableto pay following the determination of theapplication (whether or not the amount of thepayment is based on any estimate of hispotential liability which the Secretary of Statehas agreed to give); and

(b) made before the maintenance calculation hasbeen notified to the non-resident parent or (asthe case may be) before the Secretary of Statehas notified the non-resident parent that he hasdecided not to make a maintenance calculation.

(3) In such circumstances and to such extent as may beprescribed—

(a) the voluntary payment may be set off againstarrears of child support maintenance whichaccrued by virtue of the maintenancecalculation taking effect on a date earlier thanthat on which it was notified to the non-resident parent;

(b) the amount payable under a maintenancecalculation may be adjusted to take account ofthe voluntary payment.

(4) A voluntary payment shall be made to theSecretary of State unless he agrees, on such conditions ashe may specify, that it may be made to the person withcare, or to or through another person.

(5) The Secretary of State may by regulations makeprovision as to voluntary payments, and the regulationsmay in particular—

(a) prescribe what payments or descriptions ofpayment are, or are not, to count as “voluntarypayments”;

(b) prescribe the extent to which and circumstancesin which a payment, or a payment of aprescribed description, counts.”

(2) Section 41B of the 1991 Act (repayment of overpaid child supportmaintenance) shall be amended as follows.


“(1A) This section also applies where the non-resident parent hasmade a voluntary payment and it appears to the Secretary of State—

(a) that he is not liable to pay child support maintenance; or

(b) that he is liable, but some or all of the payment amounts toan overpayment,

and, in a case falling within paragraph (b), it also appears to him thatsubsection (1)(a) or (b) applies.”



Part I(4) For subsection (7) there shall be substituted—

“(7) For the purposes of this section—

(a) a payment made by a person under a maintenancecalculation which was not validly made; and

(b) a voluntary payment made in the circumstances set out insubsection (1A)(a),

shall be treated as an overpayment of child support maintenancemade by a non-resident parent.”

21. For section 43 of the 1991 Act (contribution to maintenance byRecovery of childsupport deduction from benefit) there shall be substituted—maintenance by

“Recovery of 43.—(1) This section applies where—deduction fromchild supportbenefit. (a) a non-resident parent is liable to pay a flat rate ofmaintenance by

child support maintenance (or would be sodeduction frombenefit. liable but for a variation having been agreed to),

and that rate applies (or would have applied)because he falls within paragraph 4(1)(b) or (c)or 4(2) of Schedule 1; and

(b) such conditions as may be prescribed for thepurposes of this section are satisfied.

(2) The power of the Secretary of State to makeregulations under section 5 of the Social Security1992 c. 5.Administration Act 1992 by virtue of subsection (1)(p)(deductions from benefits) may be exercised in relation tocases to which this section applies with a view to securingthat payments in respect of child support maintenance aremade or that arrears of child support maintenance arerecovered.

(3) For the purposes of this section, the benefits towhich section 5 of the 1992 Act applies are to be taken asincluding war disablement pensions and war widows’pensions (within the meaning of section 150 of the Social1992 c. 4.Security Contributions and Benefits Act 1992(interpretation)).”

22.—(1) Section 44 of the 1991 Act (jurisdiction) shall be amended asJurisdiction.follows.

(2) In subsection (1), after “United Kingdom” there shall be inserted“, except in the case of a non-resident parent who falls withinsubsection (2A)”.


“(2A) A non-resident parent falls within this subsection if he isnot habitually resident in the United Kingdom, but is—

(a) employed in the civil service of the Crown, including HerMajesty’s Diplomatic Service and Her Majesty’s OverseasCivil Service;

(b) a member of the naval, military or air forces of the Crown,including any person employed by an associationestablished for the purposes of Part XI of the Reserve1996 c. 14.Forces Act 1996;



Part I(c) employed by a company of a prescribed description

registered under the Companies Act 1985 in England and 1985 c. 6.Wales or in Scotland, or under the Companies (Northern S.I. 1986/1032

(N.I. 6).Ireland) Order 1986; or

(d) employed by a body of a prescribed description.”

(4) Subsection (3) shall cease to have effect.

23. Section 10 of the Child Support Act 1995 (which provides for the Abolition of thechild maintenancechild maintenance bonus) shall cease to have effect.bonus.1995 c. 34.

Periodical reviews.24. Article 3(4) of the Social Security Act 1998 (Commencement No. 2)Order 1998 (which saved section 16 of the 1991 Act for certain purposes) S.I. 1998/2780

(C.66).is revoked; and accordingly that section shall cease to have effect for allpurposes.

25. In section 52 of the 1991 Act (regulations and orders), for Regulations.subsection (2) there shall be substituted—

“(2) No statutory instrument containing (whether alone or withother provisions) regulations made under—

(a) section 6(1), 12(4) (so far as the regulations make provisionfor the default rate of child support maintenancementioned in section 12(5)(b)), 28C(2)(b), 28F(2)(b),30(5A), 41(2), 41A, 41B(6), 43(1), 44(2A)(d), 46 or 47;

(b) paragraph 3(2) or 10A(1) of Part I of Schedule 1; or

(c) Schedule 4B,

or an order made under section 45(1) or (6), shall be made unless adraft of the instrument has been laid before Parliament andapproved by a resolution of each House of Parliament.

(2A) No statutory instrument containing (whether alone or withother provisions) the first set of regulations made under paragraph10(1) of Part I of Schedule 1 as substituted by section 1(3) of theChild Support, Pensions and Social Security Act 2000 shall be madeunless a draft of the instrument has been laid before Parliament andapproved by a resolution of each House of Parliament.”

26. Schedule 3 (amendment of enactments) shall have effect. Amendments.

27.—(1) This section applies where— Temporarycompensation(a) a maintenance assessment is made before a prescribed date payment scheme.

following an application for one under section 4, 6 or 7 of the1991 Act; or

(b) a fresh maintenance assessment has been made following eithera periodic review under section 16 of the 1991 Act or a reviewunder section 17 of that Act (as they had effect before theirsubstitution by section 40 or 41 respectively of the Social 1998 c. 14.Security Act 1998),

and the effective date of the assessment is earlier than the date on whichthe assessment was made, with the result that arrears of child supportmaintenance have become due under the assessment.



Part I(2) The Secretary of State may in regulations provide that this section

has effect as if it were modified so as—

(a) to apply to cases of arrears of child support maintenance havingbecome due additional to those referred to in subsection (1);

(b) not to apply to any such case as is referred to in subsection (1).

(3) If this section applies, the Secretary of State may in prescribedcircumstances agree with the absent parent, on terms specified in theagreement, that—

(a) the absent parent will not be required to pay the whole of thearrears, but only some lesser amount; and

(b) the Secretary of State will not, while the agreement is compliedwith, take action to recover any of the arrears.

(4) The terms which may be specified are to be prescribed in ordetermined in accordance with regulations made by the Secretary ofState.

(5) An agreement may be entered into only if it is made before 1st April2002 and expires before 1st April 2003.

(6) If the absent parent enters into such an agreement, the Secretary ofState may, while the absent parent complies with it, refrain from takingaction under the 1991 Act to recover the arrears.

(7) Upon the expiry of the agreement, if the absent parent hascomplied with it—

(a) he ceases to be liable to pay the arrears; and

(b) the Secretary of State may make payments of such amounts andat such times as he may determine to the person with care.

(8) If the absent parent fails to comply with the agreement he becomesliable to pay the full amount of any outstanding arrears (as well as anyother amount payable in accordance with the assessment).

(9) The Secretary of State may by regulations provide for this sectionto have effect as if there were substituted for the dates in subsection (5)such later dates as are prescribed.

(10) In this section, “prescribed” means prescribed in regulationsmade by the Secretary of State.

(11) Regulations under this section shall be made by statutoryinstrument.

(12) No statutory instrument containing regulations under subsection(9) is to be made unless a draft of the instrument has been laid beforeParliament and approved by a resolution of each House of Parliament;but otherwise a statutory instrument containing regulations under thissection shall be subject to annulment in pursuance of a resolution of eitherHouse of Parliament.

28.—(1) Any regulations made under—Pilot schemes.

(a) provisions inserted or substituted in the 1991 Act by this Part ofthis Act (or Schedule 1, 2 or 3); and



Part I(b) in so far as they are consequential on or supplementary to any

such regulations, regulations made under any other provisionsin the 1991 Act,

may be made so as to have effect for a specified period not exceeding 12months.

(2) Any regulations which, by virtue of subsection (1), are to haveeffect for a limited period are referred to in this section as “a pilotscheme”.

(3) A pilot scheme may provide that its provisions are to apply only inrelation to—

(a) one or more specified areas or localities;

(b) one or more specified classes of person;

(c) persons selected by reference to prescribed criteria, or on asampling basis.

(4) A pilot scheme may make consequential or transitional provisionwith respect to the cessation of the scheme on the expiry of the specifiedperiod.

(5) A pilot scheme (“the previous scheme”) may be replaced by afurther pilot scheme making the same provision as that made by theprevious scheme (apart from the specified period), or similar provision.

(6) A statutory instrument containing (whether alone or with otherprovisions) a pilot scheme shall not be made unless a draft of theinstrument has been laid before Parliament and approved by resolutionof each House of Parliament.

29.—(1) In this Part, “the 1991Act” means theChild Support Act 1991. Interpretation,transitionalprovisions,(2) The Secretary of State may in regulations make such transitionalsavings, etc.and transitory provisions, and such incidental, supplementary, savings1991 c. 48.and consequential provisions, as he considers necessary or expedient in

connection with the coming into force of this Part or any provision in it.

(3) The regulations may, in particular—

(a) provide for the amount of child support maintenance payable byor to any person to be at a transitional rate (or more than onesuch rate successively) resulting from the phasing-in by way ofprescribed steps of any increase or decrease in the amountpayable following the coming into force of this Part or anyprovision in it;

(b) provide for a departure direction or any finding in relation to aprevious determination of child support maintenance to betaken into account in a decision as to the amount of childsupport maintenance payable by or to any person.

(4) Section 175(3) and (5) of the Social Security Contributions and 1992 c. 4.Benefits Act 1992 (supplemental power in relation to regulations) appliesto regulations made under this section as it applies to regulations madeunder that Act.

(5) The power to make regulations under this section is exercisable bystatutory instrument.



Part I(6) A statutory instrument containing regulations under this section

shall be subject to annulment in pursuance of a resolution of either Houseof Parliament.

Part II

Pensions

Chapter I

State pensions

State second pension

30.—(1) In section 22 of the Social Security Contributions and BenefitsEarnings fromwhich pension Act 1992 (earnings from which earnings factors are derived), afterderived. subsection (2) there shall be inserted—1992 c. 4.

“(2A) For the purposes specified in subsection (2)(b) above, inthe case of the first appointed year or any subsequent tax year aperson’s earnings factor shall be treated as derived only from thoseof his earnings on which primary Class 1 contributions have beenpaid or treated as paid.”

(2) In section 44 of that Act (Category A retirement pension), insubsection (6)—

(a) before paragraph (a) there shall be inserted—

“(za) where the relevant year is the first appointed year or anysubsequent year, to the aggregate of his earnings factorsderived from those of his earnings upon which primaryClass 1 contributions have been paid or treated as paid inrespect of that year;”;

and

(b) in paragraph (a), after “subsequent tax year” there shall beinserted “before the first appointed year”.

(3) After that section there shall be inserted—

“Deemed 44A.—(1) For the purposes of section 44(6)(za) above,earnings factors. if any of the conditions in subsection (2) below is satisfied

for a relevant year, a pensioner is deemed to have anearnings factor for that year which—

(a) is derived from earnings on which primary Class1 contributions were paid; and

(b) is equal to the amount which, when added to anyother earnings factors taken into account underthat provision, produces an aggregate ofearnings factors equal to the low earningsthreshold.

(2) The conditions referred to in subsection (1) aboveare that—

(a) the pensioner would, apart from this section,have an earnings factor for the year—

(i) equal to or greater than the qualifyingearnings factor for the year; but

(ii) less than the low earnings threshold forthe year;


27c. 19Child Support, Pensions and Social Security Act 2000Part II

Chapter I(b) invalid care allowance—

(i) was payable to the pensionerthroughout the year; or

(ii) would have been so payable but for thefact that under regulations the amountpayable to him was reduced to nil because ofhis receipt of other benefits;

(c) for the purposes of paragraph 5(7)(b) ofSchedule 3, the pensioner is taken to beprecluded from regular employment byresponsibilities at home throughout the year byvirtue of—

(i) the fact that child benefitwas payable tohim in respect of a child under the age ofsix; or

(ii) his satisfying such other condition asmay be prescribed;

(d) the pensioner is a person satisfying therequirement in subsection (3) below to whomlong-term incapacity benefit was payablethroughout the year, or would have been sopayable but for the fact that—

(i) he did not satisfy the contributionconditions in paragraph 2 of Schedule 3; or

(ii) under regulations the amount payableto him was reduced to nil because of hisreceipt of other benefits or of payments froman occupational pension scheme or personalpension scheme.

(3) The requirement referred to in subsection (2)(d)above is that—

(a) for one or more relevant years the pensioner haspaid, or (apart from this section) is treated ashaving paid, primary Class 1 contributions onearnings equal to or greater than the qualifyingearnings factor; and

(b) the years for which he has such a factorconstitute at least one tenth of his working life.

(4) For the purposes of subsection (3)(b) above—

(a) a pensioner’s working life shall not include—(i) any tax year before 1978-79; or(ii) any year in which he is deemed under

subsection (1) above to have an earningsfactor by virtue of fulfilling the condition insubsection (2)(b) or (c) above; and

(b) the figure calculated by dividing his working lifeby ten shall be rounded to the nearest whole year(and any half year shall be rounded down).

(5) The low earnings threshold for the first appointedyear and subsequent tax years shall be £9,500 (but subjectto section 148A of the Administration Act).


28 c. 19 Child Support, Pensions and Social Security Act 2000Part II

Chapter I(6) In subsection (2)(d)(ii) above, ‘occupational

pension scheme’ and ‘personal pension scheme’ have themeanings given by subsection (6) of section 30DD abovefor the purposes of subsection (5) of that section.”

(4) For the purposes of subsection (1) of section 44A of the Social1992 c. 4.Security Contributions and Benefits Act 1992, a pensioner is deemed tohave an earnings factor in relation to any relevant year as specified in thatsubsection if—

(a) severe disablement allowance was payable to him throughoutthe year; and

(b) he satisfies the requirement in subsection (3) of that section.

31.—(1) In section 45 of the Social Security Contributions and BenefitsCalculation.Act 1992 (calculation of additional pension in a Category A retirementpension), in subsection (2)—

(a) after “shall be” there shall be inserted “the sum of the following”;

(b) in paragraph (b), after “after 1987-88” there shall be inserted“but before the first appointed year”; and

(c) after that paragraph there shall be inserted “; and

(c) in relation to any tax years falling within subsection (3A)below, the weekly equivalent of the amount calculated inaccordance with Schedule 4A to this Act.”

(2) In that section the following subsection shall be inserted aftersubsection (3)—

“(3A) The following tax years fall within this subsection—

(a) the first appointed year;

(b) subsequent tax years.”

(3) After Schedule 4 to that Act there shall be inserted the Schedule setout in Schedule 4 to this Act.

32.—(1) In section 46 of the Social Security Contributions and BenefitsCalculation ofCategory B Act 1992 (modifications of section 45 for calculating the additionalretirement pension in certain benefits), after subsection (2) there shall be inserted—pension.

“(3) For the purpose of determining the additional pensionfalling to be calculated under section 45 above by virtue of section48BB below in a case where the deceased spouse died underpensionable age, the following definition shall be substituted for thedefinition of “N” in section 45(4)(b) above—

“‘N’ %(a) the number of tax years which begin after 5th April 1978

and end before the date when the deceased spouse dies, or

(b) the number of tax years in the period—

(i) beginning with the tax year in which the deceasedspouse (‘S’) attained the age of 16 or, if later, 1978-79,and



Chapter I(ii) ending immediately before the tax year in which

S would have attained pensionable age if S had notdied earlier,

whichever is the smaller number.”

(2) In section 48BB of that Act (Category B retirement pension:entitlement by reference to benefits under section 39A or 39B), insubsection (5) for “section 46(2)” there shall be substituted “section46(3)”.

(3) In paragraph 5 of Schedule 8 to the Welfare Reform and Pensions 1999 c. 30.Act 1999 (welfare benefits: minor and consequential amendments), sub-paragraph (b), and the word “and” immediately preceding it, shall beomitted.

33.—(1) After section 148 of the Social Security Administration Act Revaluation.1992 there shall be inserted— 1992 c. 5.

“Revaluation of 148A.—(1) The Secretary of State shall in the tax yearlow earnings preceding the first appointed year and in each subsequentthreshold. tax year review the general level of earnings obtaining in

Great Britain and any changes in that level which havetaken place during the review period.

(2) In this section, ‘the review period’ means—

(a) in the case of the first review under this section,the period beginning with 1st October 1998 andending on 30th September in the tax yearpreceding the first appointed year; and

(b) in the case of each subsequent review under thissection, the period since—

(i) the end of the last period taken intoaccount in a review under this section; or

(ii) such other date (whether earlier orlater) as the Secretary of State may determine.

(3) If on such a review it appears to the Secretary ofState that the general level of earnings has increasedduring the review period, he shall make an order underthis section.

(4) An order under this section shall be an orderdirecting that, for the purposes of the Contributions andBenefits Act—

(a) there shall be a new low earnings threshold forthe tax years after the tax year in which thereview takes place; and

(b) the amount of that threshold shall be the amountspecified in subsection (5) below—

(i) increased by the percentage by whichthe general level of earnings increased duringthe review period; and

(ii) rounded to the nearest £100 (takingany amount of £50 as nearest to the nextwhole £100).



Chapter I(5) The amount referred to in subsection (4)(b) above

is—

(a) in the case of the first review under this section,£9,500; and

(b) in the case of each subsequent review, the lowearnings threshold for the year in which thereview takes place.

(6) This section does not require the Secretary of Stateto direct any increase where it appears to him that theincrease would be inconsiderable.

(7) If on any review under subsection (1) above theSecretary of State determines that he is not required tomake an order under this section, he shall instead laybefore each House of Parliament a report explaining hisreasons for arriving at that determination.

(8) For the purposes of any reviewunder subsection (1)above the Secretary of State shall estimate the generallevel of earnings in such manner as he thinks fit.”

(2) Section 148 of the Social Security Administration Act 19921992 c. 5.(revaluation of earnings factors) shall have effect as if—

(a) the amounts for the first appointed year and any subsequent taxyear that are to be reviewed under that section,

(b) the amounts for those years to which any directions by an orderunder subsection (4) of that section are to be applied, and

(c) accordingly, the amounts for the purpose of maintaining thevalue of which that section has effect,

included the parts of the surplus in an earnings factor referred to inparagraphs 2(2)(a), 5(2)(a) and 7(2)(a) of Schedule 4A to the Social1992 c. 4.Security Contributions and Benefits Act 1992.

(3) Nothing in section 148 of the Social Security Administration Act1992 shall require, or ever have required, the earnings factors used forcomputing a surplus in an earnings factor for any year under section44(5A) of the Social Security Contributions and Benefits Act 1992 to betreated as increased in any case in which that surplus, or any part of it,is itself reviewed under section 148 of the Social Security AdministrationAct 1992.

(4) In section 128(3) of the Pensions Act 1995 (revaluation of surpluses1995 c. 26.in earnings factors under section 44(5A) of the Social SecurityContributions and Benefits Act 1992), after “1992” there shall be inserted“for the purposes of section 45(1) and (2)(a) and (b) of that Act”.

34. In each of sections 42(1)(a)(ii), 42B(1)(a) and 45A(1)(a) of theReport ofGovernment Pension Schemes Act 1993 (reports by Government Actuary on cost ofActuary: rebates providing benefits equivalent to benefits which are foregone) for “which,etc. under section 48A,” there shall be substituted “(or parts of benefits)1993 c. 48. which, in accordance with section 48A below and Schedule 4A to the

Social Security Contributions and Benefits Act 1992,”.

35.—(1) The Social Security Contributions and Benefits Act 1992 shallSupplementary.be amended as follows.



Chapter I(2) In section 21(5A)(b) (contribution conditions)—

(a) after “22(1)(a)” there shall be inserted “, (2A)”; and

(b) for “44(6)(a)” there shall be substituted “44(6)(za) and (a)”.

(3) In section 39 (rate of widowed mother’s allowance and widow’spension), in subsections (1), (2) and (3), after “sections 44 to 45B” thereshall be inserted “and Schedule 4A”.

(4) In section 39C (rate of widowed parent’s allowance andbereavement allowance), in subsections (1), (3) and (4), after “sections 44to 45A” there shall be inserted “and Schedule 4A”.

(5) In section 44 (Category A retirement pension), in subsection (5A),after “section 45” there shall be inserted “and Schedule 4A”.

(6) In that subsection, for the words from “that year,” to “surplus”there shall be substituted “that year,

(b) the amount of the surplus is the amount of that excess, and

(c) for the purposes of section 45(1) and (2)(a) and (b) below,the adjusted amount of the surplus”.

(7) In subsection (6) of that section, after “section 45” there shall beinserted “or Schedule 4A”.

(8) In section 45 (the additional element in a Category A retirementpension)—

(a) in subsections (1) and (2)(a) and (b), before “amount” (in eachplace) there shall be inserted “adjusted”; and

(b) in subsection (6), for “the amount of any surpluses” there shallbe substituted “any amount”.

(9) In section 48A(4) (Category B retirement pension for marriedperson), after “sections 44 to 45B above” there shall be inserted “andSchedule 4A below”.

(10) In section 48B (Category B retirement pension for widows andwidowers), in subsections (2) and (3), after “sections 44 to 45B above”there shall be inserted “and Schedule 4A below”.

(11) In section 48BB (Category B retirement pension: entitlement byreference to benefits under section 39A or 39B), in subsections (5) and (6),after “sections 44 to 45A above” there shall be inserted “and Schedule 4Abelow”.

(12) In section 48C(4) (Category B retirement pension: general), after“sections 44 to 45B above” there shall be inserted “and Schedule 4Abelow”.

(13) In section 51 (Category B retirement pension for widowers), insubsections (2) and (3), after “sections 44 to 45A above” there shall beinserted “and Schedule 4A below”.

(14) In section 122(1) (interpretation of Parts I to VI), at theappropriate place in alphabetical order, there shall be inserted—

“‘first appointed year’ means such tax year, no earlier than2002-03, as may be appointed by order, and ‘secondappointed year’ means such subsequent tax year as may beso appointed;”.



Chapter I(15) In section 176 (Parliamentary control), after subsection (3) there

shall be inserted—

“(4) Subsection (3) above does not apply to a statutoryinstrument by reason only that it contains an order appointing thefirst or second appointed year (within the meanings given by section122(1) above).”

Report on pensions uprating

36. The Government Actuary or the Deputy Government ActuaryReport on cost ofpension uprating shall report to the Secretary of State his opinion on the effect on the levelin line with of the National Insurance Fund, and the effect which might be expectedgeneral earnings on the rates of contributions, in each year up to and including 2005-06 oflevel.

annual increases in the basic pension by the percentage increase in thegeneral level of earnings; and the Secretary of State shall lay a copy of thereport before Parliament.

Earnings factors

37. In section 148(2) of the Social Security Administration Act 1992Revaluation ofearnings factors. (revaluation of earnings factors), for the words from “place” to the end1992 c. 5. there shall be substituted “place—

(a) since the end of the period taken into account for the lastreview under this section, or

(b) since such other date (whether earlier or later) as he maydetermine;

and for the purposes of any such review the Secretary of State shallestimate the general level of earnings in such manner as he thinksfit.”

38.—(1) In section 48A(5) of the 1993 Act (power to modify theModification ofearnings factors. application of section 44(5) of the 1992 Act where in any year a1993 c. 48. pensioner’s earnings derive only partially from contracted-out1992 c. 4. employment), after “44(5)” there shall be inserted “or (5A)”.

(2) Subsection (1) shall have effect—

(a) in relation to the application of section 44(5A) of the 1992 Actby virtue of sections 39C(1) and 48BB(5) of that Act;

(b) in relation to the application of section 44(5A) of the 1992 Actin the circumstances described in section 128(4) to (6) of the1995 Act.

(3) In relation to the period—

(a) beginning with 6th April 2000, and

(b) ending with the day before the first regulations under section48A(5) of the 1993 Act (as amended by subsection (1) above)come into force,

the Secretary of State shall be taken to have, and to have had, power tocalculate and pay relevant pensions by reference to section 44(5) of the1992 Act as modified by regulations under section 48A(5) of the 1993 Act.

(4) For the purpose of applying subsection (3) above—

(a) the substitution made by section 128(1) of the 1995 Act shall beignored; and



Chapter I(b) references in enactments to section 44(5A) of the 1992 Act shall

(so far as necessary) be treated as references to section 44(5).

(5) The first regulations under section 48A(5) of the 1993 Act (asamended by subsection (1) above) may include provision in relation to—

(a) revising the calculation of a relevant pension;

(b) paying a relevant pension in accordance with a revisedcalculation.

(6) Relevant pensions are pensions which fall to be calculated—

(a) in the circumstances described in section 128(4) to (6) of the 1995Act; and

(b) in relation to persons where, by virtue of section 48A(1) of the1993 Act, section 44(6) of the 1992 Act has effect in any tax yearas mentioned in section 48A(1) of the 1993 Act in relation tosome but not all of a person’s earnings.

(7) For the purposes of this section—

(a) the 1992 Act is the Social Security Contributions and Benefits 1992 c. 4.Act 1992;

(b) the 1993 Act is the Pension Schemes Act 1993; 1993 c. 48.

1995 c. 26.(c) the 1995 Act is the Pensions Act 1995.

Preservation of rights in respect of additional pensions

39.—(1) In the provisions of the Social Security Contributions and Preservation ofrights in respect ofBenefits Act 1992 that are set out in subsection (2) (provisions relating toadditionaladditional pensions for surviving spouses)—pensions.

(a) the references to 5th April 2000 (wherever occurring) shall haveeffect, and be deemed always to have had effect, as references to5th October 2002; and

(b) the references to 6th April 2000 (wherever occurring) shall haveeffect, and be deemed always to have had effect, as references to6th October 2002.

(2) Those provisions are—

(a) sections 39(3) and 39C(4) (widowed mother’s allowance andwidowed parent’s allowance);

(b) sections 48BB(7), 48C(3) and 51(3) (Category B retirementpensions); and

(c) paragraphs 4(3), 5A(2) and (3) and 6(3) and (4) of Schedule 5(deferred pensions).

(3) For section 52(3) of the Welfare Reform and Pensions Act 1999 1999 c. 30.(power to substitute a later year for references to year 2000 in prescribedprovisions of the Social Security Contributions and Benefits Act 1992)there shall be substituted—

“(3) The regulations may amend (or further amend) anyprescribed provision set out in section 39(2) of the Child Support,Pensions and Social Security Act 2000 (which sets out provisionsfalling within subsection (2) of this section) so as to substitute areference to a later date for—

(a) any reference in that provision to 5th October 2002 or 6thOctober 2002; or



Chapter I(b) any reference to a date inserted in that provision by a

substitution made by virtue of this subsection.”

(4) After section 52(4) of that Act of 1999 there shall be inserted—

“(4A) The regulations may provide, for the purposes of anyprovision made by virtue of subsection (4), for a case in which aperson who, as a consequence of receiving incorrect or incompleteinformation, did not give any consideration to—

(a) the taking of a step which is a step he might have taken hadhe considered the matter on the basis of correct andcomplete information, or

(b) refraining from taking a step which is a step he did take butmight have refrained from taking had he considered thematter on that basis,

to be treated as a case in which his failure to take the step, or histaking of the step he did take, was in reliance on the incorrect orincomplete information and as a case in which that step is one whichhe would have taken, or (as the case may be) would not have taken,had the information been correct and complete.”

(5) In section 52(6) of that Act of 1999 (supplemental provisions ofregulations relating to the scheme), after paragraph (e) there shall beinserted—

“(ea) prescribing the matters that may be relied on, and thepresumptions that may be made, in the determination ofwhether or not the prescribed conditions have beensatisfied;”.

Other provisions

40. In paragraph 5 of Schedule 3 to the Social Security ContributionsHomeresponsibilities and Benefits Act 1992 (contribution conditions for entitlement toprotection. Category A and B retirement pension, widowed mother’s allowance and1992 c. 4. widow’s pension), after sub-paragraph (7) (reduction of number of years

for which contribution conditions must be satisfied) there shall beinserted—

“(7A) Regulations may provide that a person is not to be takenfor the purposes of sub-paragraph (7)(b) above as precluded fromregular employment by responsibilities at home unless he meets theprescribed requirements as to the provision of information to theSecretary of State.”

41.—(1) In section 49 of the Welfare Reform and Pensions Act 1999Sharing of statescheme rights. (creation of state scheme pension debits and credits), for subsection (4)1999 c. 30. there shall be substituted—

“(4) The Secretary of State may by regulations make provisionabout the calculation and verification of cash equivalents for thepurposes of this section.

(4A) The power conferred by subsection (4) above includespower to provide—

(a) for calculation or verification in such manner as may beapproved by or on behalf of the Government Actuary, and



Chapter I(b) for things done under the regulations to be required to be

done in accordance with guidance from time to timeprepared by a person prescribed by the regulations.”

(2) In section 45B of the Social Security Contributions and Benefits 1992 c. 4.Act 1992 (pension sharing resulting in reduction of additional CategoryA retirement pension), for subsection (7) there shall be substituted—




(b) for things done under the regulations to be required to bedone in accordance with guidance from time to timeprepared by a person prescribed by the regulations.”

(3) In section 55A of that Act (shared additional pension), forsubsection (6) there shall be substituted—





(4) In section 55B of that Act (pension sharing resulting in reduction ofshared additional pension), for subsection (7) there shall be substituted—





42.—(1) This section applies to any state pension information which is Disclosure of statepensionheld in relation to any individual—information.

(a) by the Secretary of State; or

(b) in connection with the provision of any services provided to theSecretary of State for purposes connected with his functionsrelating to social security, by the person providing thoseservices.



Chapter I(2) Regulations may confer a power on the Secretary of State to

disclose, or to authorise the disclosure of, any information to which thissection applies in any case in which—

(a) the person to whom the disclosure is made is a person fallingwithin subsection (3) who has, in the prescribed manner, appliedto the Secretary of State for the disclosure of the information;and

(b) it appears to the Secretary of State that the prescribed conditionsfor the making of a disclosure of the information in question tothat person have been satisfied.

(3) A person falls within this subsection if—

(a) he is the trustee or manager of an occupational pension schemeof which the individual to whom the information relates is amember;

(b) he is the trustee or manager of a personal pension scheme ofwhich that individual is a member;

(c) he is the employer in relation to an occupational pension schemeof which that individual is a member;

(d) he is the employer in relation to any employed earner’semployment of that individual which is not contracted-outemployment; or

(e) he is proposing to provide services to that individual incircumstances in which the provision of the services, or theproposal to do so, may involve the giving of advice or forecaststo which the information to which this section applies may berelevant.

(4) The Secretary of State shall secure that his powers under thissection are exercised so that at least the following is prescribed for thepurposes of subsection (2)(b), namely—

(a) in the case of an application for information made by a personfalling within paragraph (e) of subsection (3), a condition thatthe individual to whom the information relates has consented tothe making of the application and to the disclosure; and

(b) in any other case, either that condition or the alternativecondition set out in subsection (5).

(5) The alternative condition is—

(a) that such steps as may be prescribed have been taken for thepurpose of ascertaining whether the individual to whom theinformation relates objects to the making of the application forthe disclosure of information relating to him; and

(b) that the prescribed time has elapsed without any objection bythat individual.

(6) A person applying to the Secretary of State, in accordance withregulations under this section, for the disclosure of any informationrelating to an individual shall be entitled, for the purpose of making theapplication, to make such disclosures of information relating to thatindividual as may be authorised by the regulations.

(7) In this section the reference, in relation to an individual, to statepension information is a reference to the following information aboutthat individual—



Chapter I(a) his date of birth, and the age at which and date on which he

attains pensionable age—

(i) for the purposes of the Pension Schemes Act 1993, in 1993 c. 48.relation to any guaranteed minimum pension to which he isentitled; and

(ii) in accordance with the rules in paragraph 1 of Schedule4 to the Pensions Act 1995; 1995 c. 26.

(b) the amount of any basic retirement pension a present or futureentitlement to which has already accrued to that individual, andthe amount of any additional retirement pension such anentitlement to which has already accrued to that individual;

(c) a projection of the amount of the basic retirement pension towhich that individual is likely to become entitled, or mightbecome entitled in particular circumstances; and

(d) a projection of the amount of the additional retirement pensionto which that individual is likely to become entitled, or mightbecome entitled in particular circumstances.

(8) Regulations under this section shall be made by statutoryinstrument, which shall be subject to annulment in pursuance of aresolution of either House of Parliament.

(9) Subsections (4) to (6) of section 189 of the Social Security 1992 c. 5.Administration Act 1992 (supplemental and incidental powers etc.) shallapply in relation to any power to make regulations under this section asthey apply in relation to the powers to make regulations that areconferred by that Act.

(10) For the purposes of section 121E of the Social SecurityAdministration Act 1992 (supply of information by the Inland Revenueto the Secretary of State for the purposes of the Secretary of State’sfunctions relating to social security), the Secretary of State’s functionsrelating to social security shall be taken to include any power conferredon him by regulations under this section.


“basic retirement pension” and “additional retirement pension”mean any basic or, as the case may be, additional pension underthe Social Security Contributions and Benefits Act 1992; 1992 c. 4.

“contracted-out employment” has the same meaning as in thePension Schemes Act 1993;

“employed earner” has the same meaning as it has in Parts I to V ofthe Social Security Contributions and Benefits Act 1992 (byvirtue of section 2(1) of that Act);

“employer”—

(a) in relation to any occupational pension scheme, has thesame meaning as in Part I of the Pensions Act 1995; and

(b) in relation to employed earner’s employment, has thesame meaning as in the Pension Schemes Act 1993;

“member”, in relation to an occupational pension scheme, has thesame meaning as in Part I of the Pensions Act 1995;

“occupational pension scheme” and “personal pension scheme”have the same meanings as in the Pension Schemes Act 1993;



Chapter I“prescribed” means prescribed by or determined in accordance with

regulations;

“regulations” means regulations made by the Secretary of State;

“trustee” and “manager”, in relation to an occupational pensionscheme, have the same meanings as in Part I of the Pensions1995 c. 26.Act 1995.

Chapter II

Occupational and Personal Pension Schemes

Selection of trustees and of directors of corporate trustees

43.—(1) Section 16 of the Pensions Act 1995 (requirements for trusteesMember-nominated to be nominated and selected by members of the scheme) shall betrustees. amended in accordance with subsections (2) to (8) of this section.

(2) In subsection (1) (duty of trustees to make arrangements forselection of member-nominated trustees)—

(a) the words “(subject to section 17)” and in paragraph (b), thewords “, and the appropriate rules,” shall be omitted; and

(b) in paragraph (a), for “persons selected” there shall be substituted“the selection of persons nominated”.

(3) In subsection (3)(a) (selected persons to be trustees), for “inaccordance with the appropriate rules” there shall be substituted “as amember-nominated trustee”.

(4) In subsection (4) (procedure for filling vacancies unfilled because ofinsufficient nominations), for “the appropriate rules” there shall besubstituted “regulations”.

(5) In subsection (5) (period of service as a member-nominatedtrustee), after “six years” there shall be inserted “but for a member-nominated trustee to be eligible for selection again at the end of anyperiod of service as such a trustee.”


“(6A) The arrangements must provide that, where the employerso requires, a person who is not a qualifying member of the schememust have the employer’s approval to qualify for selection as amember-nominated trustee.”

(7) In subsection (8) (persons ceasing to be member-nominatedtrustees on ceasing to be qualifying members of the scheme)—

(a) for “The arrangements must” there shall be substituted “Thearrangements—

(a) must”; and

(b) at the end there shall be inserted “; and

(b) may provide for a member-nominated trustee who—(i) is a qualifying member of one of the following

descriptions, that is to say, an active, deferred orpensioner member, and

(ii) ceases (without ceasing to be a qualifyingmember) to be a qualifying member of that description,

to cease, by virtue of that fact, to be a trustee.”



Chapter II(8) After subsection (8) there shall be inserted—

“(9) Regulations may make provision in relation toarrangements under this section—

(a) supplementing the requirements of this section as to thematters to be contained in the arrangements; and

(b) providing for the manner in which, and the time withinwhich, persons are, for the purposes of the arrangements,to be nominated and selected as member-nominatedtrustees.

(10) This section does not apply in the case of a trust scheme if—

(a) every member of the scheme is a trustee of the scheme andno other person is such a trustee;

(b) every trustee of the scheme is a company; or

(c) the scheme is of a prescribed description.”

(9) Section 17 of that Act (exceptions to section 16 where theemployer’s alternative proposals are approved) shall cease to have effect.

44.—(1) Section 18 of the Pensions Act 1995 (requirements for Corporatetrustees.member-nominated directors of trustee company) shall be amended in1995 c. 26.accordance with subsections (2) to (9) of this section.

(2) In subsection (1) (duty of corporate trustee to make arrangementsfor selection of member-nominated directors)—

(a) for the words from “and the employer” to “satisfied” there shallbe substituted “and there is no trustee of the scheme who is nota company”;

(b) the words “, subject to section 19,” and in paragraph (b), thewords “, and the appropriate rules,” shall be omitted; and

(c) in paragraph (a), for “persons selected” there shall be substituted“the selection of persons nominated”.

(3) In subsection (3)(a) (selected persons to be directors), for “inaccordance with the appropriate rules” there shall be substituted “as amember-nominated director”.

(4) In subsection (4) (procedure for filling vacancies unfilled because ofinsufficient nominations), for “the appropriate rules” there shall besubstituted “regulations”.

(5) In subsection (5) (period of service as a member-nominateddirector), after “six years” there shall be inserted “but for a member-nominated director to be eligible for selection again at the end of anyperiod of service as such a director.”


“(6A) The arrangements must provide that, where the employerso requires, a person who is not a qualifying member of the schememust have the employer’s approval to qualify for selection as amember-nominated director.”

(7) In subsection (7) (persons ceasing to be member-nominateddirectors on ceasing to be qualifying members of the scheme)—

(a) for “The arrangements must” there shall be substituted “Thearrangements—



Chapter II(a) must”; and

(b) at the end there shall be inserted “; and

(b) may provide for a member-nominated director who—(i) is a qualifying member of one of the following

descriptions, that is to say, an active, deferred orpensioner member, and

(ii) ceases (without ceasing to be a qualifyingmember) to be a qualifying member of that description,

to cease, by virtue of that fact, to be a director.”

(8) For subsection (8) (companies that are trustees of two or moredifferent trust schemes) there shall be substituted—

“(8) Where—

(a) the same company is a trustee of two or more schemes byreference to each of which this section applies to thecompany, and

(b) the company does not, in the prescribed manner, elect thatthis subsection should not apply,

the preceding provisions of this section and section 21(8) shall haveeffect as if those schemes were a single scheme and the members ofeach of the schemes were members of that single scheme.”


“(9) Regulations may make provision in relation toarrangements under this section—

(a) supplementing the requirements of this section as to thematters to be contained in the arrangements; and

(b) providing for the manner in which, and the time withinwhich, persons are, for the purposes of the arrangements,to be nominated and selected as member-nominateddirectors.

(10) This section does not apply in the case of a trust scheme if thescheme is of a prescribed description.”

(10) Sections 19 and 20 of that Act (exceptions to section 18 where theemployer’s alternative proposals are approved and meaning of“appropriate rules”) shall cease to have effect.

45.—(1) After section 18 of the Pensions Act 1995 there shall beEmployer’sproposals for inserted—selection oftrustees or

“Further provisions about the selection of trustees and directorsdirectors.1995 c. 26. Employer’s 18A.—(1) Where, in the case of any trust scheme—

proposals for(a) the employer makes proposals for the adoptionselection of

of arrangements for the nomination andtrustees ordirectors. selection of the trustees of the scheme,

(b) the proposed arrangements comply with all therequirements of section 16 and do not containanything inconsistent with those requirements,

(c) the proposed arrangements comply with suchother requirements as may be prescribed,



Chapter II(d) the proposed arrangements are approved under

such procedure for obtaining the views ofmembers of the scheme as may be prescribed,and

(e) such other conditions are satisfied as may beprescribed,

the trustees of the scheme shall secure that the proposedarrangements are made and implemented.

(2) Where, in the case of any company which is trusteeof a trust scheme of which there is no trustee who is not acompany—

(a) the employer makes proposals for the adoptionof arrangements for the nomination andselection of the directors of the company,

(b) the proposed arrangements comply with all therequirements of section 18 and do not containanything inconsistent with those requirements,

(c) the proposed arrangements comply with suchother requirements as may be prescribed,

(d) the proposed arrangements are approved undersuch procedure for obtaining the views ofmembers of the scheme as may be prescribed,and

(e) such other conditions are satisfied as may beprescribed,

the company shall secure that the proposed arrangementsare made and implemented.

(3) Arrangements made and implemented under thissection may include provision that is different from thatfor which provision is made by regulations under section16(9) or 18(9).

(4) Regulations may make provision—

(a) as to the manner in which, and the time withinwhich, arrangements proposed and approvedfor the purposes of this section are to beimplemented by the trustees of a trust scheme orby a company which is a trustee of a trustscheme; and

(b) as to what is to happen where an approval for thepurposes of this section of any arrangementsceases, in accordance with regulations, to haveeffect.

(5) Regulations about the manner in which anything isapproved for the purposes of this section may provide—

(a) for it to be treated as approved in accordancewith the prescribed procedure where theAuthority determine that prescribed conditionshave been satisfied in relation to any departuresfrom that procedure that have occurred; and



Chapter II(b) for persons who do not object to it to be treated

as having approved it.

(6) Regulations may provide that, for the purposes ofthis section and any arrangements under this section,arrangements are to be taken as complying with therequirements of section 16 or 18, and as being consistentwith those requirements, notwithstanding thatnominations made for the purposes of the arrangementsby a person or organisation which—

(a) represents for any particular purposes theinterests of persons who are comprised in themembership of the scheme in question, and

(b) is of such a description as is specified in theregulations,

are to be treated under the arrangements as nominations,or as the only nominations, made by qualifying membersof the scheme.

(7) Provision made by or under the precedingprovisions of this section with respect to member-nominated trustees does not apply in the case of a trustscheme if—

(a) every member of the scheme is a trustee of thescheme and no other person is such a trustee; or

(b) every trustee of the scheme is a company.

(8) Provision made by or under the precedingprovisions of this section does not apply if the scheme isof a prescribed description.”

(2) In section 68(2)(b) of that Act (power of trustee to modify scheme),for “17(2)” there shall be substituted “18A(1)”.

(3) In section 117(2)(c) of that Act (overriding requirements), for“17(2)” there shall be substituted “18A(1)”.

46.—(1) In section 21 of the Pensions Act 1995 (consequences forNon-compliancein relation to trustees of failure to implement arrangements)—arrangements or

(a) in subsections (1) and (2), the words “, or the appropriate rules,”proposals.shall be omitted;1995 c. 26.

(b) in subsections (1) and (3), for “17(2)”, in each place, there shallbe substituted “18A(1)”;

(c) in subsection (2), for “19(2)”, in each place, there shall besubstituted “18A(2)”;

(d) in subsection (3), the words “or rules” shall be omitted;

(e) in subsection (4), for “17(2), 18(1) or 19(2)” there shall besubstituted “18(1) or 18A(1) or (2)” and the words “(or furtherarrangements)” in paragraph (a), paragraph (b) and the word“and” immediately preceding it shall be omitted;

(f) subsection (5) shall cease to have effect;

(g) in subsection (6), for “20” there shall be substituted “18A”;



Chapter II(h) in subsection (7), for “16 to 20” there shall be substituted “16 and

18” and the words “and this section”, paragraph (b) and theword “and” immediately preceding paragraph (b) shall beomitted;

(i) in subsection (8)(a), for the words from “of the appropriate” to“given” there shall be substituted “for the purposes of section18A of proposed arrangements must be given, in accordancewith regulations under that section,”; and

(j) paragraph (b) of subsection (8) and the word “and” immediatelypreceding it shall be omitted.

(2) In subsection (1) of that section, after paragraph (b) there shall beinserted “or

(c) regulations under section 16(9)(b) have not been compliedwith,”.

(3) In subsection (2) of that section, after paragraph (b) there shall beinserted “or

(c) regulations under section 18(9)(b) have not been compliedwith,”.

(4) After subsection (2) of that section there shall be inserted—

“(2A) Section 10 applies to an employer who has made aproposal for the purposes of section 18A but who contravenes anyrequirements of any regulations under section 18A relating to thesubmission of that proposal for approval.”


“(6A) In sections 16 to 18A ‘company’ means a company withinthe meaning given by section 735(1) of the Companies Act 1985 or 1985 c. 6.a company which may be wound up under Part V of the Insolvency 1986 c. 45.Act 1986 (unregistered companies).”

Winding-up of schemes

47.—(1) In section 22(1) and (3) of the Pensions Act 1995 Information to begiven to the(circumstances in which provisions apply to a trust scheme the employerAuthority.in relation to which has been subjected to an insolvency procedure), for1995 c. 26.“26”, in each case, there shall be substituted “26A”.

(2) After section 26 of that Act there shall be inserted—

“Information to 26A.—(1) If at any time while section 22 applies inbe given to the relation to a scheme—Authority in a

(a) the trustees of the scheme do not include at leasts. 22 case.one person who the practitioner or officialreceiver has informed them is a person aboutwhose independent status he is satisfied, and

(b) the trustees have no other reasonable grounds



Chapter IIfor believing that their number includes at leastone person about whose independent status thepractitioner or official receiver is satisfied,

it shall be the duty of the trustees, as soon as reasonablypracticable after it first appears to any one or more ofthem as mentioned in paragraphs (a) and (b), to givenotice to the Authority that the scheme appears not tohave an independent trustee.

(2) If a trust scheme is without trustees at any timewhile section 22 applies to it, it shall be the duty of everyperson involved in the administration of the scheme, assoon as reasonably practicable after it first appears to himthat the scheme is without trustees, to give notice to theAuthority that the scheme has no trustees.

(3) No person shall be required to give a notice undersubsection (1) or (2) at any time when it appears to him onreasonable grounds—

(a) that it is the intention of the practitioner orofficial receiver, for the purpose of complyingwith his duty under section 23(1)(b), to make orsecure the appointment of any person as atrustee of the scheme; and

(b) that the appointment will be made within theperiod specified by or under section 23(2) for theperformance of that duty.

(4) No person shall be required to give a notice undersubsection (2) at any time when it appears to him, onreasonable grounds, that the Authority are already awarethat the scheme has no trustees.

(5) Where the practitioner or official receiver at anytime informs the trustees of a trust scheme that he is not,or is no longer, satisfied about a person’s independentstatus, no account shall be taken for the purposes ofsubsection (1)(a) of any information that he was sosatisfied which was given by the practitioner or officialreceiver to the trustees before that time.

(6) References in this section to the practitioner orofficial receiver being satisfied about a person’sindependent status are references to his being satisfied forthe purposes of section 23 that that person is anindependent person.

(7) If subsection (1) is not complied with, section 10applies to any trustee who has failed to take all such stepsas are reasonable to secure compliance.

(8) Section 10 applies to any person who fails tocomply with a duty imposed on him by subsection (2).

Information to 26B.—(1) Where, at any time—be given in cases

(a) section 22 would apply in relation to a trustwhere s. 22scheme but for regulations under section 118,disapplied.

(b) the employer in relation to the scheme is the sole



Chapter IItrustee of the scheme,

(c) there are persons involved in the administrationof the scheme, and

(d) none of those persons has received an employer’sassurance relating to the scheme,

it shall be the duty of every person who is involved in theadministration of the scheme, as soon as reasonablypracticable after it first appears to him as mentioned inparagraphs (a) and (b), to give notice to the Authoritythat the case is one falling within paragraphs (a) to (d).

(2) For the purposes of this section a person hasreceived an employer’s assurance relating to a scheme ifduring the period while section 22 would have applied inrelation to the scheme but for regulations under section118—

(a) he has been informed by the person who is theemployer in relation to the scheme that there isno reason why the employer should notcontinue to act as a trustee of the scheme;

(b) he has not subsequently been informed by theperson who is the employer in relation to thescheme that that has ceased to be the case; and

(c) the trustees of the scheme have not changed sincehe was informed as mentioned in paragraph (a).

(3) No person shall be required to give a notice undersubsection (1)—

(a) at any time when it appears to him, onreasonable grounds, that the Authority arealready aware that the case is one falling withinparagraphs (a) to (d) of that subsection;

(b) if a period is prescribed for the purposes of thisparagraph, at any time in the prescribed periodafter the event by virtue of which the schemebecame a scheme in relation to which section 22would apply but for regulations under section118; or

(c) at any other time that is prescribed for thepurposes of this subsection.

(4) Section 10 applies to any person who fails tocomply with any duty imposed on him by subsection (1).

Construction of 26C.—(1) In sections 26A and 26B references, inss. 26A and 26B. relation to a scheme, to a person involved in the

administration of the scheme are (subject to subsection(2)) references to any person who is so involved otherwisethan as—

(a) the employer in relation to that scheme;

(b) a trustee of the scheme;

(c) the auditor of the scheme or its actuary;

(d) a legal adviser of the trustees of the scheme;



Chapter II(e) a fund manager for the scheme;

(f) a person acting on behalf of a person who isinvolved in the administration of the scheme;

(g) a person providing services to a person soinvolved;

(h) a person acting in his capacity as an employee ofa person so involved;

(i) a person who would fall within any of paragraphs(f) to (h) if persons acting in relation to thescheme in any capacity mentioned in thepreceding paragraphs were treated as involvedin the administration of a scheme.

(2) In this section references, in relation to a scheme, toa person involved in the administration of the scheme donot include references to persons of a particulardescription if regulations provide for persons of thatdescription to be excluded from those references.

(3) If regulations so provide in relation to anyprovision of section 26A or 26B, so much of thatprovision as requires any notice to be given as soon asreasonably practicable after a particular time shall haveeffect as a requirement to give that notice within suchperiod after that time as may be prescribed.”

(3) In subsection (2) of section 118 of that Act (powers to provide forsections 22 to 26 not to apply in the case of certain schemes), for “sections22 to 26” there shall be substituted “some or all of the provisions ofsections 22 to 26C”.

(4) After that subsection there shall be inserted—

“(3) Regulations may modify sections 26A and 26B for thepurpose of requiring prescribed persons, in addition to or instead ofthe persons who (apart from the regulations) would be required toprovide information to the Authority under those sections, to besubject to the duties imposed by those sections.”

(5) In section 178(b) of the Pension Schemes Act 1993 (regulations1993 c. 48.providing forwho is to be treated as a trustee of a scheme), at the end thereshall be inserted “or sections 22 to 26C of the Pensions Act 1995”.1995 c. 26.

48. After section 71 of the Pensions Act 1995 (effect of modificationModification ofscheme to secure orders under section 69) there shall be inserted—winding-up.

“Modification 71A.—(1) The Authority may at any time while—by Authority to

(a) an occupational pension scheme is being woundsecure winding-up, andup.

(b) the employer in relation to the scheme is subjectto an insolvency procedure,

make an order modifying that scheme with a view toensuring that it is properly wound up.



Chapter II(2) The Authority shall not make such an order except

on an application made to them, at a time such as ismentioned in subsection (1), by the trustees or managersof the scheme.

(3) Except in so far as regulations otherwise provide,an application for the purposes of this section must bemade in writing.

(4) Regulations may make provision—

(a) for the form and manner in which an applicationfor the purposes of this section is to be made tothe Authority;

(b) for the matters which are to be contained in suchan application;

(c) for the documents which must be attached to anapplication for the purposes of this section orwhich must otherwise be delivered to theAuthority with or in connection with any suchapplication;

(d) for persons to be required, before such time asmay be prescribed, to give such notifications ofthe making of an application for the purposes ofthis section as may be prescribed;

(e) for the matters which are to be contained in anotification of such an application;

(f) for persons to have the opportunity, for aprescribed period, to make representations tothe Authority about the matters to which suchan application relates;

(g) for the manner in which the Authority are to dealwith any such application.

(5) The power of the Authority to make an order underthis section—

(a) shall be limited to what they consider to be theminimum modification necessary to enable thescheme to be properly wound up; and

(b) shall not include power to make anymodification that would have a significantadverse effect on—

(i) the accrued rights of any member of thescheme; or

(ii) any person’s entitlement under thescheme to receive any benefit.

(6) A modification of an occupational pension schemeby an order of the Authority under this section shall be aseffective in law as if—

(a) it had been made under powers conferred by orunder the scheme;

(b) the modification made by the order were capableof being made in exercise of such powersnotwithstanding any enactment, rule of law or



Chapter IIrule of the scheme that would have preventedtheir exercise for the making of thatmodification; and

(c) the exercise of such powers for the making of thatmodificationwould not have been subject to anyenactment, rule of law or rule of the schemerequiring the implementation of any procedureor the obtaining of any consent in connectionwith the making of a modification.

(7) Regulations may provide that, in prescribedcircumstances, this section—

(a) does not apply in the case of occupationalpension schemes of a prescribed class ordescription; or

(b) in the case of occupational pension schemes of aprescribed class or description applies withprescribed modifications.

(8) The times when an employer in relation to anoccupational pension scheme shall be taken for thepurposes of this section to be subject to an insolvencyprocedure are—

(a) in the case of a trust scheme, while section 22applies in relation to the scheme; and

(b) in the case of a scheme that is not a trust scheme,while section 22 would apply in relation to thescheme if it were a trust scheme;

and for the purposes of this subsection no account shallbe taken of modifications or exclusions contained in anyregulations under section 118.

(9) The Authority shall not be entitled to make anorder under this section in relation to a public servicepension scheme.”

49.—(1) After section 72 of the Pensions Act 1995 there shall beReports aboutwinding-up. inserted—1995 c. 26.

“Supervision of winding-up

Reports to 72A.—(1) Where—Authority about

(a) an occupational pension scheme is being woundwinding-up.up, and

(b) the winding-up is one beginning at a time(whether before or after the passing of this Act)by reference to which regulations provide that itis to be a winding-up to which this sectionapplies,

it shall be the duty of the trustees or managers, inaccordance with this section, to make periodic reports inwriting to the Authority about the progress of thewinding-up.



Chapter II(2) In the case of each winding-up, the first report to be

made under this section shall be made—

(a) except in a case to which paragraph (b) applies—

(i) after the end of the prescribed periodbeginning with the day on which the winding-up began; and

(ii) before the end of the prescribed periodthat begins with the end of the period thatapplies for the purposes of sub-paragraph (i);

and

(b) in a case where the winding-up began before thecoming into force of the regulations which (forthe purposes of subsection (1)(b)) prescribe thetime by reference to which the winding-up is oneto which this section applies, before such date asmay be prescribed by those regulations.

(3) Subject to subsection (4), each subsequent reportmade under this section in the case of a winding-up shallbe made no more than twelve months after the date which(apart from any postponement under subsection (4)) wasthe latest date for the making of the previous reportrequired to be made in the case of that winding-up.

(4) If, in the case of any report required to be madeunder subsection (3), the Authority consider (whether onan application made for the purpose or otherwise) that itwould be appropriate to do so, they may, at any timebefore the latest time for the making of that report,postpone that latest time by such period as they think fit.

(5) The latest time for making a report shall not bepostponed under subsection (4) by more than twelvemonths.

(6) Subject to the application of the limit specified insubsection (5) to the cumulative period of thepostponements, more than one postponement may bemade under subsection (4) in the case of the same report.

(7) A report under this section—

(a) must contain such information and statementsas may be prescribed; and

(b) must be made in accordance with the prescribedrequirements.

(8) Regulations may—

(a) provide that, in prescribed circumstances, thereshall be no obligation to make a report thatwould otherwise fall to be made under thissection;

(b) make provision for the period within which, andthe manner in which, applications may be madefor a postponement under subsection (4); and



Chapter II(c) modify subsections (3) and (5) by substituting

periods of different lengths for the periods forthe time being specified in those subsections.

(9) If there is any failure by the trustees or managers ofany scheme to comply with their duty to make a report inaccordance with the requirements imposed by or underthis section—

(a) section 3 applies, if the scheme is a trust scheme,to any trustee who has failed to take all suchsteps as are reasonable to secure compliance;and

(b) section 10 applies (irrespective of the descriptionof scheme involved) to any trustee or managerwho has failed to take all such steps.”

(2) In section 124 of that Act (interpretation of Part I), after subsection(3) there shall be inserted—

“(3A) In a case of the winding-up of an occupational pensionscheme in pursuance of an order of the Authority under section 11or of an order of a court, the winding-up shall (subject to subsection(3E)) be taken for the purposes of this Part to begin—

(a) if the order provides for a time to be the time when thewinding-up begins, at that time; and

(b) in any other case, at the time when the order comes intoforce.

(3B) In a case of the winding-up of an occupational pensionscheme in accordance with a requirement or power contained in therules of the scheme, the winding-up shall (subject to subsections (3C)to (3E)) be taken for the purposes of this Part to begin—

(a) at the time (if any) which under those rules is the time whenthe winding-up begins; and

(b) if paragraph (a) does not apply, at the earliest time whichis a time fixed by the trustees or managers as the time fromwhich steps for the purposes of the winding-up are to betaken.

(3C) Subsection (3B) shall not require a winding-up of a schemeto be treated as having begun at any time before the end of anyperiod during which effect is being given—

(a) to a determination under section 38 that the scheme is notfor the time being to be wound up; or

(b) to a determination in accordance with the rules of thescheme to postpone the commencement of a winding-up.

(3D) In subsection (3B)(b) the reference to the trustees ormanagers of the scheme shall have effect in relation to any schemethe rules of which provide for a determination that the scheme is tobe wound up to be made by persons other than the trustees ormanagers as including a reference to those other persons.

(3E) Subsections (3A) to (3D) above do not apply for suchpurposes as may be prescribed.”



Chapter II(3) After section 49 of that Act (other responsibilities of trustees

employers etc.) there shall be inserted—

“Record of 49A.—(1) Except so far as regulations otherwisewinding-up provide, the trustees or managers of an occupationaldecisions. pension scheme shall keep written records of—

(a) any determination for the winding-up of thescheme in accordance with its rules;

(b) decisions as to the time from which steps for thepurposes of the winding-up of the scheme are tobe taken;

(c) determinations under section 38;

(d) determinations in accordance with the rules ofthe scheme to postpone the commencement of awinding-up of the scheme.

(2) For the purpose of this section—

(a) the determinations and decisions of whichwritten records must be kept under this sectioninclude determinations and decisions bypersons who—

(i) are not trustees or managers of ascheme, but

(ii) are entitled, in accordance with therules of a scheme, to make a determinationfor its winding-up;

and

(b) regulations may, in relation to suchdeterminations or decisions as are mentioned inparagraph (a), impose obligations to keepwritten records on the persons making thedeterminations or decisions (as well as, orinstead of, on the trustees or managers).

(3) Regulations may provide for the form and contentof any records that are required to be kept under thissection.

(4) Section 3 applies to any trustee of a scheme whofails to take all such steps as are reasonable to securecompliance by the trustees of that scheme with theobligations imposed on them by this section.

(5) Section 10 applies to any trustee or manager of ascheme who fails to take all such steps as are reasonableto secure compliance by the trustees or managers of thatscheme with those obligations.”

50. After the section 72A inserted in the Pensions Act 1995 by section Directions forfacilitating49 there shall be inserted—winding-up.

“Directions by 72B.—(1) Subject to the following provisions of this 1995 c. 26.Authority for section, the Authority shall have power, at any time afterfacilitating the winding-up of an occupational pension scheme haswinding-up.

begun, to give directions under this section if theyconsider that the giving of the direction is appropriate on



Chapter IIany of the grounds set out in subsection (2).

(2) Those grounds are—

(a) that the trustees or managers of the scheme arenot taking all the steps in connection with thewinding-up that the Authority consider wouldbe being taken if the trustees or managers wereacting reasonably;

(b) that steps being taken by the trustees ormanagers for the purposes of the winding-upinvolve things being done with what theAuthority consider to be unreasonable delay;

(c) that the winding-up is being obstructed orunreasonably delayed by the failure of anyperson—

(i) to provide information to the trusteesor managers;

(ii) to provide information to a personinvolved in the administration of the scheme;

(iii) to provide information to a person ofa prescribed description; or

(iv) to take any step (other than theprovision of information) that he has beenasked to take by the trustees or managers;

(d) that the winding-up would be likely to befacilitated or accelerated by the taking by anyperson other than the trustees or managers ofany other steps;

(e) that in any prescribed circumstances not fallingwithin paragraphs (a) to (d)—

(i) the provision by any person of anyinformation to the trustees or managers or toany other person, or

(ii) the taking of any other step by anyperson,

would be likely to facilitate or accelerate theprogress of the winding-up.

(3) Except in prescribed circumstances, the power ofthe Authority to give a direction under this section in thecase of a winding-up shall be exercisable only where—

(a) periodic reports about the progress of thewinding-up are required to be made undersection 72A; and

(b) the first report that has to be made for thepurposes of that section in the case of thatwinding-up either has been made or should havebeen made.

(4) Regulations may provide that, in prescribedcircumstances, the Authority shall not give a direction on



Chapter IIthe ground set out in subsection (2)(e) except in responseto an application made by the trustees or managers of thescheme for the giving of a direction on that ground.

(5) A direction under this section is a direction inwriting given to and imposing requirements on—

(a) any or all of the trustees or managers of thescheme;

(b) a person who is involved in its administration; or

(c) a person of a prescribed description.

(6) The requirements that may be imposed by adirection under this section are any requirement for theperson to whom it is given, within such period specified inthe direction as the Authority may consider reasonable—

(a) to provide the trustees or managers with all suchinformation as may be specified or described inthe direction;

(b) to provide a person involved in theadministration of the scheme with all suchinformation as may be so specified or described;

(c) to provide a person who is of a prescribeddescription with all such information as may beso specified or described;

(d) to take such steps (other than the provision ofinformation) as may be so specified ordescribed.

(7) If, at any time before the end of a period withinwhich any step is required by a direction under this sectionto be taken by any person, the Authority consider(whether on an application made for the purpose orotherwise) that it would be appropriate to do so, they mayextend (or further extend) that period until such time asthey think fit.

(8) Regulations may—

(a) impose limitations on the steps that a personmaybe required to take by a direction under thissection;

(b) make provision for the period within which, andthe manner in which, applications may be madefor a period to be extended (or further extended)under subsection (7).

(9) In this section references, in relation to a scheme, toa person involved in the administration of the scheme are(subject to subsection (10)) references to any person whois so involved otherwise than as—

(a) the employer in relation to that scheme;

(b) a trustee or manager of the scheme;

(c) the auditor of the scheme or its actuary;

(d) a legal adviser of the trustees or managers of thescheme;



Chapter II(e) a fund manager for the scheme;

(f) a person acting on behalf of a person who isinvolved in the administration of the scheme;

(g) a person providing services to a person so involved;

(h) a person acting in his capacity as an employee ofa person so involved;

(i) a person who would fall within any of paragraphs(f) to (h) if persons acting in relation to thescheme in any capacity mentioned in thepreceding paragraphs were treated as involvedin the administration of a scheme.

(10) In this section references, in relation to a scheme,to a person involved in the administration of the schemedo not include references to persons of a particulardescription if regulations provide for persons of thatdescription to be excluded from those references.

Duty to comply 72C.—(1) It shall be the duty of any person to whom awith directions direction is given under section 72B to comply with it.under s. 72B.

(2) Where a direction is given under section 72B to thetrustees of a trust scheme, section 3 applies to any trusteewho fails, without reasonable excuse, to take all suchsteps as are reasonable to secure compliance with it.

(3) Section 10 applies to any trustee or manager of ascheme who fails, without reasonable excuse, to take allsuch steps as are reasonable to secure compliance by thetrustees or managers of that scheme with any directiongiven to them under section 72B.

(4) Section 10 applies to any person who—

(a) is a person to whom a direction under section72B is given otherwise than in the capacity of atrustee or manager; and

(b) without reasonable excuse, fails to comply withthat direction.

(5) For the purposes of this section it shall not be areasonable excuse in relation to any failure to provideinformation in pursuance of a direction under section 72Bthat the provision of that information would (but for theduty imposed by subsection (1) of this section) involve abreach by any person of a duty owed to another not todisclose that information.”

Other provisions

51.—(1) In section 51(2) of the Pensions Act 1995 (annual increases inRestriction onindex-linking rate of pension), for “Subject to section 52” there shall be substitutedwhere annuity tied “Subject to sections 51A and 52”.to investments.

(2) After section 51 of that Act there shall be inserted—1995 c. 26.

“Restriction on 51A.—(1) No increase under section 51 is required toincrease where be made, at any time on or after the relevant date, of soannuity tied to much of any pension under a money purchase schemeinvestments.

as—



Chapter II

(a) is payable by way of an annuity the amount ofwhich for any year after the first year ofpayment is determined (whether under theterms of the scheme or under the terms of theannuity contract in pursuance of which it ispayable) by reference to fluctuations in thevalue of, or the return from, particularinvestments;

(b) does not represent benefits payable in respect ofthe protected rights of any member of thescheme; and

(c) satisfies such other conditions (if any) as may beprescribed.

(2) For the purposes of this section it shall beimmaterial whether the annuity in question is payable outof the funds of the scheme in question or under an annuitycontract entered into for the purposes of the scheme.

(3) In this section ‘the relevant date’ means the dateappointed for the coming into force of section 51 of theChild Support, Pensions and Social Security Act 2000.”

52.—(1) In subsection (1) of section 113 of the Pension Schemes Act Information formembers of1993 (regulations as to information to be provided to scheme membersschemes etc.etc.), for the word “and” at the end of paragraph (c) there shall be1993 c. 48.substituted—

“(ca) of the pensions and other benefits an entitlement towhichwould be likely to accrue to the member, or be capable ofbeing secured by him, in respect of the rights that may ariseunder it; and”.


“(3A) The regulations may provide for the information that mustbe given to be determined, in whole or part, by reference to guidancewhich—

(a) is prepared and from time to time revised by a prescribedbody; and

(b) is for the time being approved by the Secretary of State.

(3B) The regulations may, in relation to cases where a scheme isbeing wound up, contain—

(a) provision conferring power on the Regulatory Authority,at times before the period expires, to extend any periodspecified in the regulations as the period within which arequirement imposed by the regulations must be compliedwith; and

(b) provision as to the contents of any application for theexercise of such a power and as to the form and manner inwhich, and the time within which, any such applicationmust be made.”



Chapter IIJurisdiction of the 53.—(1) Section 146 of the Pension Schemes Act 1993 (functions of thePensions Pensions Ombudsman) shall be amended as follows.Ombudsman.1993 c. 48. (2) In subsection (1), after paragraph (b) there shall be inserted—

“(ba) a complaint made to him by or on behalf of anindependent trustee of a trust scheme who, in connectionwith any act or omission which is an act or omissioneither—

(i) of trustees of the scheme who are not independenttrustees, or

(ii) of former trustees of the scheme who were notindependent trustees,

alleges maladministration of the scheme,”.

(3) In that subsection, for the words after sub-paragraph (ii) ofparagraph (d) there shall be substituted—

“and in a case falling within sub-paragraph (ii) referencesin this Part to the scheme to which the reference relates arereferences to each of the schemes,

(e) any dispute not falling within paragraph (f) betweendifferent trustees of the same occupational pensionscheme,

(f) any dispute, in relation to a time while section 22 of thePensions Act 1995 (schemes subject to insolvency1995 c. 26.procedures) applies in relation to an occupational pensionscheme, between an independent trustee of the scheme andeither—

(i) trustees of the scheme who are not independenttrustees, or

(ii) former trustees of the scheme who were notindependent trustees, and

(g) any question relating, in the case of an occupationalpension scheme with a sole trustee, to the carrying out ofthe functions of that trustee.”


“(1A) The Pensions Ombudsman shall not investigate ordetermine any dispute or question falling within subsection (1)(c) to(g) unless it is referred to him—

(a) in the case of a dispute falling within subsection (1)(c), byor on behalf of the actual or potential beneficiary who is aparty to the dispute,

(b) in the case of a dispute falling within subsection (1)(d), byor on behalf of any of the parties to the dispute,

(c) in the case of a dispute falling within subsection (1)(e), byor on behalf of at least half the trustees of the scheme,

(d) in the case of a dispute falling within subsection (1)(f), byor on behalf of the independent trustee who is a party tothe dispute,

(e) in the case of a question falling within subsection (1)(g), byor on behalf of the sole trustee.



Chapter II(1B) For the purposes of this Part, any reference to or

determination by the Pensions Ombudsman of a question fallingwithin subsection (1)(g) shall be taken to be the reference ordetermination of a dispute.”

(5) In subsection (3) (persons responsible for the management of thescheme to be the trustees and managers and employer), after“occupational pension scheme” there shall be inserted “or a personalpension scheme”.

(6) For paragraph (a) of subsection (6) (exclusion of theOmbudsman’sjurisdiction where court proceedings have been begun) there shall besubstituted—

“(a) if, before the making of the complaint or the reference ofthe dispute—

(i) proceedings in respect of the matters which wouldbe the subject of the investigation have been begun inany court or employment tribunal, and

(ii) those proceedings are proceedings which have notbeen discontinued or which have been discontinued onthe basis of a settlement or compromise binding all thepersons by or on whose behalf the complaint orreference is made;”.

(7) In subsection (7) (persons who are actual or potentialbeneficiaries)—

(a) after paragraph (b) there shall be inserted—

“(ba) a person who is entitled to a pension credit as against thetrustees or managers of the scheme;” and

(b) in sub-paragraph (i) of paragraph (c), for “paragraph (a) or (b)”there shall be substituted “paragraph (a), (b) or (ba)”.

(8) In subsection (8) (interpretation) after the definition of “employer”there shall be inserted—

“‘independent trustee’, in relation to a scheme, means—(a) a trustee of the scheme appointed under section

23(1)(b) of the Pensions Act 1995 (appointment of 1995 c. 26.independent trustee by insolvency practitioner orofficial receiver),

(b) a person appointed under section 7(1) of that Actto replace a trustee falling within paragraph (a) or thisparagraph;”.

(9) In subsection (1)—

(a) for “complaints and disputes” there shall be substituted“matters”;

(b) in paragraph (b), for the words from “is to” to the end of theparagraph there shall be substituted “are references to the otherscheme referred to in that sub-paragraph”; and

(c) in paragraphs (c) and (d), the words “which arises”, in each placewhere they occur, shall be omitted.

(10) Subsection (6) does not have effect in relation to proceedingsbegun before the day appointed under section 86 for the coming into forceof this section.



Chapter IIInvestigations by 54.—(1) The Pension Schemes Act 1993 shall be amended as follows.the Pensions

(2) In section 148(5) (meaning of parties to an investigation for theOmbudsman.purposes of staying proceedings), after paragraph (b) there shall be1993 c. 48.inserted—

“(ba) any actual or potential beneficiary of the scheme whoseinterests are or may be affected by the matters to which thecomplaint or dispute relates,

(bb) any actual or potential beneficiary of the scheme whoseinterests it is reasonable to suppose might be affected by—

(i) the Pensions Ombudsman’s determination of thecomplaint or dispute, or

(ii) directions that may be given by the Ombudsmanin consequence of that determination,”.

(3) For subsection (1) of section 149 (obligation to allow persons tocomment on allegations in complaint or reference) there shall besubstituted—

“(1) Where the Pensions Ombudsman proposes to conduct aninvestigation into a complaint made or dispute referred under thisPart, he shall—

(a) give every person against whom allegations are made in thecomplaint or reference an opportunity to comment onthose allegations,

(b) give every person responsible for the management of thescheme to which the complaint or reference relates anopportunity to make representations to him about thematters to which the complaint or dispute relates, and

(c) give every actual or potential beneficiary of that schemewhose interests are or may be affected by the matters towhich the complaint or dispute relates, an opportunity tomake representations about those matters.

(1A) Subject to subsection (1B), subsection (1) shall not requirean opportunity to make comments or representations to be given toany person if the Pensions Ombudsman is satisfied that thatperson is—

(a) a person who, as the person or one of the persons makingthe complaint or reference, has had his opportunity tomake comments or representations about the matters inquestion; or

(b) a person whose interests in relation to the matters to whichthe complaint or dispute relates are being represented, inaccordance with rules under this section, by a person whohas been given an appropriate opportunity to makecomments or representations.

(1B) The Pensions Ombudsman shall, under subsection (1), givean opportunity to make comments and representations to a personfalling within subsection (1A)(a) in any case in which that person isa person who, in accordance with rules, is appointed or otherwisedetermined, after the making of the complaint or reference, torepresent the interests of other persons in relation to the matters towhich the complaint or dispute relates.”



Chapter II(4) In subsection (3) of section 149 (matters as to which rules may be

made), for “and” at the end of paragraph (b) there shall be substituted—

“(ba) for the interests of all of a number of persons who—

(i) are actual or potential beneficiaries of the schemeto which the complaint or reference relates, and

(ii) appear to have the same interest in relation to anyof the matters to which the complaint or dispute relates,

to be represented for the purposes of the investigation bysuch one or more of them, or such other person, as may beappointed by the Ombudsman or otherwise determined inaccordance with the rules,”.

(5) In that subsection, at the end of paragraph (c), there shall beinserted “and

(d) for the payment of legal expenses incurred by a party to aninvestigation (as defined in section 148(5)) out of fundsheld for the purposes of the scheme to which the complaintor reference relates.”

(6) After subsection (7) of section 149 there shall be inserted—

“(8) References in this section to the matters to which acomplaint or dispute relates include references to any matter whichit is reasonable to suppose might form the subject of—

(a) the Pensions Ombudsman’s determination of thecomplaint or dispute, or

(b) any directions that may be given by the Ombudsman inconsequence of that determination.”

(7) In subsection (1) of section 151 (persons to be given notice of adetermination by the Ombudsman), at the end of paragraph (b) thereshall be inserted “and

(c) to every other person who was required under section 149to be given an opportunity—

(i) to comment on an allegation in the complaint orreference, or

(ii) to make representations about matters to whichthe complaint or reference relates,”.

(8) In subsection (3) of section 151 (persons bound by determinations),for “and” at the end of paragraph (b) there shall be substituted—

“(ba) any person who under section 149 was given such anopportunity to make any such comment or representationas is mentioned in subsection (1)(c) of this section,

(bb) any person whose interests were represented by a personfalling within any of the preceding paragraphs, and”;

and, in paragraph (c) of that subsection for “paragraph (a) or (b)” thereshall be substituted “any of paragraphs (a) to (bb)”.

(9) Nothing in any provision made by this section shall—

(a) apply in relation to any complaint or reference made to thePensions Ombudsman before the day on which this sectioncomes into force; or



Chapter II(b) authorise the making of any provision applying in relation to

any such complaint or reference.

55. After section 66 of the Pensions Act 1995 there shall be inserted—Prohibition ondifferent rules foroverseas residents

“Treatment of overseas residents etc.etc.1995 c. 26. Prohibition on 66A.—(1) This section applies where an occupational

different rules pension scheme contains provisions contraveningfor overseas subsection (2) or (3).residents etc.

(2) Except so far as regulations otherwise provide,provisions of an occupational pension scheme contravenethis subsection to the extent that they would (apart fromthis section) have an effect with respect to—

(a) the entitlement of any person to benefits underthe scheme, or

(b) the payment to any person of benefits under thescheme,

which would be different according to whether or not aplace outside the United Kingdom is specified by thatperson as the place to which he requires payments ofbenefits under the scheme to be made to him.

(3) Except so far as regulations otherwise provide,provisions of an occupational pension scheme contravenethis subsection to the extent that they would (apart fromthis section) have an effect with respect to—

(a) the entitlement of any person to remain amember of the scheme,

(b) the eligibility of any person to remain a personby or in respect ofwhomcontributions are madetowards or under the scheme, or

(c) the making by or in respect of any person who isa member of the scheme of any contributionstowards or under the scheme,

which would be different according to whether thatperson works wholly in the United Kingdom or wholly orpartly outside the United Kingdom.

(4) Provisions contravening subsection (2) shall haveeffect, in relation to all times after the coming into forceof section 55 of the Child Support, Pensions and SocialSecurity Act 2000, as if they made the same provision inrelation to a person who requires payments of benefits tobe made to a place outside the United Kingdom as theymake in relation to a person in whose case all payments ofbenefits fall to be made to a place in the United Kingdom.

(5) Provisions contravening subsection (3) shall haveeffect, in relation to all times after the coming into forceof section 55 of the Child Support, Pensions and SocialSecurity Act 2000, as if they made the same provision inrelation to persons working wholly or partly outside theUnited Kingdom as they make in relation to personsworking wholly in the United Kingdom.



Chapter II(6) This section—

(a) shall be without prejudice to any enactmentunder which any amount is to be or may bededucted, or treated as deducted, from amountspayable by way of benefits under the scheme ortreated as so payable; and

(b) shall not apply in relation to so much of anyprovision of a scheme as is required for securingcompliancewith the conditions of any approval,exemption or relief given or available under theTax Acts.”

56. Schedule 5 (which contains miscellaneous amendments of the Miscellaneousamendments andPension Schemes Act 1993 and the Pensions Act 1995 and makesalternative to anti-provision for an alternative to the anti-franking rules in Part III of thatfranking rules.Act of 1993) shall have effect.1993 c. 48.1995 c. 26.

Chapter III

War Pensions

57.—(1) After section 5 of the Pensions Appeal Tribunals Act 1943 Rights of appeal.there shall be inserted— 1943 c. 39.

“Appeals in 5A.—(1) Where, in the case of any such claim as isother cases. referred to in section 1, 2 or 3 of this Act, the Minister

makes a specified decision—

(a) he shall notify the claimant of the decision,specifying the ground on which it is made, and

(b) thereupon an appeal against the decision shall lieto the Tribunal on the issue whether the decisionwas rightly made on that ground.

(2) For the purposes of subsection (1), a ‘specifieddecision’ is a decision (other than a decision which iscapable of being the subject of an appeal under any otherprovision of this Act) which is of a kind specified by theMinister in regulations made by statutory instrument.

(3) Regulations under this section shall not be madeunless a draft of the regulations has been laid before, andapproved by a resolution of, each House of Parliament.”

(2) In subsection (2) of section 6 of that Act (further appeals to HighCourt in cases of appeals brought under sections 1 to 4), for the wordsfrom “section one” to “four” there shall be substituted “sections 1, 2, 3,4 or 5A”.

(3) In subsection (2A) of that section (setting aside of decisions ofTribunal on appeals under sections 1, 2, 3 or 4), for “or 4” there shall besubstituted “, 4 or 5A”.

(4) Section 1(2) of the Pensions Appeal Tribunals Act 1949 (no right of 1949 c. 12.appeal against rejection of claims relating to service before 3rd September1939) shall cease to have effect.

58.—(1) In section 8 of the Pensions Appeal Tribunals Act 1943 (time Time limit forappeals.limit for appeals), in subsection (1) (notice of appeal to be given within



Chapter IIItwelve months of notification of decision or assessment), for the wordsfrom “twelve months after” to “in any other case,” there shall besubstituted “six months after”.


“(4) The Minister may by regulations made by statutoryinstrument amend subsections (1) and (3) so as to substitute adifferent number of months for any number of months specifiedthere.

(5) The Minister may by regulations made by statutoryinstrument provide that the Tribunal may, in circumstancesprescribed in the regulations, allow an appeal to be brought not laterthan twelve months after the end of any period limited by thissection.

(6) Regulations under subsection (4) or (5) shall not be madeunless a draft of the regulations has been laid before, and approvedby a resolution of, each House of Parliament.”

(3) Subsection (1) shall not have effect in relation to—

(a) decisions from which an appeal lies to the Tribunal undersections 1 to 4 of the Pensions Appeal Tribunals Act 1943 and1943 c. 39.which are made before the day on which that subsection comesinto force, or

(b) decisions or assessments from which an appeal lies to theTribunal under section 5(2) of that Act and which are madebefore the day on which that subsection comes into force.

(4) In relation to decisions falling within subsection (3)(a) of thissection, section 8 of the Pensions Appeal Tribunals Act 1943 shall haveeffect as if for paragraphs (a) to (c) of subsection (1) of that section therewere substituted “the day on which section 58(1) of the Child Support,Pensions and Social Security Act 2000 came into force”.

(5) In section 6(1) of the War Pensions Act 1921 (notice of appeal to1921 c. 49.be given within twelve months of notification of rejection of claim), for“twelve” there shall be substituted “six”.

(6) Subsection (5) shall not have effect in relation to any appeal if thedecision or assessment appealed against was made before the day onwhich that subsection comes into force.

59. Before section 6 of the Pensions Appeal Tribunals Act 1943Matters relevanton appeal to (constitution, jurisdiction and procedure of Pensions Appeal Tribunal),Pensions Appeal there shall be inserted—Tribunal.

“Matters 5B. In deciding any appeal, a Pensions Appealrelevant on Tribunal—appeal.

(a) need not consider any issue that is not raised bythe appellant or the Minister in relation to theappeal; and

(b) shall not take into account any circumstancesnot obtaining at the time when the decisionappealed against was made.”



Chapter IIIConstitution and60.—(1) In sub-paragraph (2) of paragraph 2 of the Schedule to theprocedure ofPensions Appeal Tribunals Act 1943 (remuneration for members ofPensions AppealPensions Appeal Tribunals), after “remuneration” there shall be insertedTribunals.“and allowances”.1943 c. 39.

(2) After that sub-paragraph there shall be inserted—

“(2A) Subject to sub-paragraphs (3) and (4) below, a member ofsuch a Tribunal shall hold and vacate his office in accordance withthe terms of his appointment, but shall be eligible forreappointment.”

(3) After paragraph 2 of that Schedule, there shall be inserted—

“2A.—(1) The Lord Chancellor shall ensure that theappointments made by him under paragraph 2 above have the effect,in the case of each of the Tribunals, that the persons holding officeas members of that Tribunal at all times include—

(a) persons who are legally qualified;

(b) persons who are medically qualified;

(c) persons with knowledge or experience of service in HerMajesty’s naval, military or air forces; and

(d) other persons.

(2) For the purposes of this Schedule a person is legallyqualified if—

(a) he has a seven year general qualificationwithin the meaningof section 71 of the Courts and Legal Services Act 1990; 1990 c. 41.

(b) he is an advocate or solicitor in Scotland of at least sevenyears’ standing; or

(c) he is a member of the Bar of Northern Ireland or solicitorof the Supreme Court of Northern Ireland of at least sevenyears’ standing.

(3) For the purposes of this Schedule a person is medicallyqualified if he is a duly qualified medical practitioner of at least sevenyears’ standing.

(4) In making any appointment under paragraph 2 it shall be theduty of the Lord Chancellor to have regard to the desirability ofhaving as members of the Tribunals persons with knowledge orexperience of matters relating to the disability of persons.

2B.—(1) A President of Pensions Appeal Tribunals and a DeputyPresident of Pensions Appeal Tribunals may be appointed for eachpart of the United Kingdom.

(2) The person entitled to appoint a person under this paragraphto be a President or Deputy President of Pensions Appeal Tribunalsshall be—

(a) in the case of an appointment for England and Wales, theLord Chancellor;

(b) in the case of an appointment for Scotland, the LordPresident of the Court of Session; and

(c) in the case of an appointment for Northern Ireland, theLord Chief Justice of Northern Ireland.



Chapter III(3) Only legally qualified members of a PensionsAppeal Tribunal

shall be eligible for appointment under this paragraph.

(4) A person shall cease to be President or Deputy President ofPensions Appeal Tribunals if he ceases to be a member of any suchTribunal.

(5) The Deputy President of Pensions Appeal Tribunals for anypart of the United Kingdom shall carry out such of the functions ofthe President for that part of the United Kingdom as that Presidentassigns to him.

(6) If at any time the President of Pensions Appeal Tribunals forany part of the United Kingdom is temporarily unable to carry outhis functions under this Schedule, those functions shall be carriedout by the Deputy President for that part of the United Kingdom.”

(4) For paragraph 3 of that Schedule (constitution of Tribunal forparticular hearings) there shall be substituted—

“3. The members of the Tribunal hearing a particular appealshall in every case include a legally qualified member; and only alegally qualified member may preside as chairman for the hearing ofany appeal.

3A.—(1) The President of Pensions Appeal Tribunals for any partof the United Kingdom may give directions as to—

(a) the number of members of the Tribunal who should hear anappeal in that part of the United Kingdom;

(b) the extent to which the members hearing such an appealmust include—

(i) medically qualified persons; and(ii) persons who are neither legally qualified nor

medically qualified;

(c) the extent to which in the case of such an appeal themembers hearing it must include persons satisfying otherrequirements specified by the President;

(d) the manner of determining the members who are to serve asthe chairman and members of the Tribunal for the hearingof such an appeal.

3B. The President of Pensions Appeal Tribunals for any part ofthe United Kingdom may give directions as to the practice andprocedure to be followed by such Tribunals in that part of theUnited Kingdom.

3C.—(1) The power to give directions under paragraphs 3A and3B shall be exercisable in relation to a particular appeal, to acategory of appeal or to appeals generally.

(2) If at any time there is, in the case of any part of the UnitedKingdom, neither a President of Pensions Appeal Tribunals nor aDeputy President, the power of the President to give directionsunder paragraphs 3A and 3B above shall be exercisable—

(a) in the case of England and Wales, by the Lord Chancellor;

(b) in the case of Scotland, by the Lord President of the Courtof Session; and



Chapter III(c) in the case of Northern Ireland, by the Lord Chief Justice

of Northern Ireland.

(3) The power to give directions under paragraphs 3A and 3Babove includes power to vary or revoke directions previously given.”

(5) In Schedule 11 to the Courts and Legal Services Act 1990 (judges 1990 c. 41.barred from legal practice), at the end there shall be inserted “Member ofa Pensions Appeal Tribunal”.

61.—(1) In section 9 of the Chronically Sick and Disabled Persons Act Composition ofcentral advisory1970 (central advisory committee on war pensions to include chairmen ofcommittee.not less than twelve of the war pensions committees), in subsection (1), for1970 c. 44.“chairmen of not less than twelve” there shall be substituted “chairman of

at least one”.

(2) In section 3 of the War Pensions Act 1921 (constitution of central 1921 c. 49.advisory committee), for “representatives of any committees” there shallbe substituted “at least one person from one of the committees”.

Part III

Social Security

Loss of benefit

62.—(1) If— Loss of benefit forbreach of(a) a court makes a determination that a person (“the offender”) has community order.

failed without reasonable excuse to comply with therequirements of a relevant community order made in respectof him,

(b) the Secretary of State is notified in accordance with regulationsunder section 64 of the determination, and

(c) the offender is a person with respect to whom the conditions forany entitlement to a relevant benefit are or become satisfied,

then, even though those conditions are satisfied, the following restrictionsshall apply in relation to the payment of that benefit in the offender’s case.

(2) Subject to subsections (3) to (5), the relevant benefit shall not bepayable in the offender’s case for the prescribed period.

(3) Where the relevant benefit is income support, the benefit shall bepayable in the offender’s case for the prescribed period as if the applicableamount used for the determination under section 124(4) of the Social 1992 c. 4.Security Contributions and Benefits Act 1992 of the amount of theoffender’s entitlement for that periodwere reduced in suchmanner as maybe prescribed.

(4) The Secretary of State may by regulations provide that, where therelevant benefit is jobseeker’s allowance, any income-based jobseeker’sallowance shall be payable, during the whole or a part of the prescribedperiod, as if one or more of the following applied—

(a) the rate of the allowance were such reduced rate as may beprescribed;

(b) the allowance were payable only if there is compliance by theoffender with such obligations with respect to the provision ofinformation as may be imposed by the regulations;



Part III(c) the allowance were payable only if the circumstances are

otherwise such as may be prescribed.

(5) Where the relevant benefit is a payment under section 2 of theEmployment andTraining Act 1973 (under which training allowances are1973 c. 50.payable), that benefit shall not be payable for the prescribed period exceptto such extent (if any) as may be prescribed.

(6) Where the determination by a court that was made in the offender’scase is quashed or otherwise set aside by the decision of that or any othercourt, all such payments and other adjustments shall be made in his caseas would be necessary if the restrictions imposed by or under this sectionin respect of that determination had not been imposed.

(7) The length of any period prescribed for the purposes of any ofsubsections (2) to (5) shall not exceed twenty-six weeks.


“income-based jobseeker’s allowance” and “joint-claim jobseeker’sallowance” have the same meanings as in the Jobseekers Act1995 c. 18.1995;

“relevant benefit” means—(a) income support;(b) any jobseeker’s allowance other than joint-claim

jobseeker’s allowance;(c) any benefit under the Social Security Contributions1992 c. 4.

and Benefits Act 1992 (other than income support) which isprescribed for the purposes of this section; or

(d) any prescribed payment under section 2 of theEmployment and Training Act 1973 (under which trainingallowances are payable);

“relevant community order” means—(a) a community service order;(b) a probation order;(c) a combination order;(d) such other description of community order within the

meaning of the Powers of Criminal Courts (Sentencing) Act2000 as may be prescribed for the purposes of this section; or

(e) any order falling in England and Wales to be treated asan order specified in paragraphs (a) to (d).

(9) In relation to a relevant benefit falling within paragraph (d) of thedefinition of that expression in subsection (8), references in this section tothe conditions for entitlement to that benefit being or becoming satisfiedwith respect to any person are references to there having been or, as thecase may be, the taking of a decision to make a payment of such benefitto that person.

(10) In relation to any time before the coming into force of the Powersof Criminal Courts (Sentencing) Act 2000, the reference to that Act insubsection (8) shall be taken to be a reference to Part I of the Criminal1991 c. 53.Justice Act 1991.

(11) In the application to Scotland of this section—

(a) in subsection (1) after the word “excuse” insert “(or, in the caseof a probation order, failed)”;



Part III(b) for paragraph (b) of that subsection substitute—

“(b) the Secretary of State is notified in accordance with an Actof Adjournal made under section 64 of thedetermination”; and

(c) in subsection (8)—

(i) in the definition of relevant benefit, paragraph (d) doesnot apply in the case of any payment made by or on behalf ofthe Scottish Ministers; and

(ii) in the definition of relevant community order, forparagraphs (c) to (e) substitute—

“(c) such other description of order made under theCriminal Procedure (Scotland) Act 1995 as may be 1995 c. 46.prescribed for the purposes of this section; or

(d) any order falling in Scotland to be treated as anorder specified in paragraphs (a) to (c).”

63.—(1) Subsections (2) and (3) shall have effect, subject to the other Loss of joint-claimjobseeker’sprovisions of this section, where—allowance.

(a) the conditions for the entitlement of any joint-claim couple to ajoint-claim jobseeker’s allowance are or become satisfied at anytime; and

(b) the restriction in subsection (2) of section 62 would apply in thecase of at least one of the members of the couple if theentitlement were an entitlement of that member to a relevantbenefit.

(2) The allowance shall not be payable in the couple’s case for so muchof the prescribed period as is a period for which—

(a) in the case of each of the members of the couple, the restrictionin subsection (2) of section 62 would apply if the entitlementwere an entitlement of that member to a relevant benefit; or

(b) that restriction would so apply in the case of one of the membersof the couple and the other member of the couple is subject tosanctions for the purposes of section 20A of the Jobseekers Act 1995 c. 18.1995 (denial or reduction of joint-claim jobseeker’s allowance).

(3) For any part of the period for which subsection (2) does not apply,the allowance—

(a) shall be payable in the couple’s case as if the amount of theallowance were reduced to an amount calculated using themethod prescribed for the purposes of this subsection; but

(b) shall be payable only to the member of the couple who is not theperson in relation to whom the court has made a determination.

(4) The Secretary of State may by regulations provide in relation tocases to which subsection (2) would otherwise apply that joint-claimjobseeker’s allowance shall be payable in a couple’s case, during the wholeor a part of so much of the prescribed period as falls within paragraph (a)or (b) of that subsection, as if one or more of the following applied—

(a) the rate of the allowance were such reduced rate as may beprescribed;



Part III(b) the allowance were payable only if there is compliance by each

of the members of the couple with such obligations with respectto the provision of information as may be imposed by theregulations;

(c) the allowance were payable only if the circumstances areotherwise such as may be prescribed.

(5) Subsection (6) of section 20A of the Jobseekers Act 19951995 c. 18.(calculation of reduced amount) shall apply for the purposes ofsubsection (3) above as it applies for the purposes of subsection (5) ofthat section.

(6) Subsection (6) of section 62 shall apply for the purposes of thissection in relation to any determination relating to one or both membersof the joint-claim couple as it applies for the purposes of that section inrelation to the determination relating to the offender.

(7) The length of any period prescribed for the purposes of subsection(2) or (3) shall not exceed twenty-six weeks.


“joint-claim couple” and “joint-claim jobseeker’s allowance” havethe same meanings as in the Jobseekers Act 1995; and

“relevant benefit” has the same meaning as in section 62.

64.—(1) A court in Great Britain shall, before making a relevantInformationprovision. community order in relation to any person, explain to that person in

ordinary language the consequences by virtue of sections 62 and 63 of afailure to comply with the order.

(2) The Secretary of State may by regulations require the ChiefProbation Officer for any area in England and Wales, or such otherperson as may be prescribed, to notify the Secretary of State at theprescribed time and in the prescribed manner—

(a) of the laying by a person employed or appointed by a probationcommittee of any information that a person has failed tocomply with the requirements of a relevant community order;

(b) of any such determination as is mentioned in section 62(1);

(c) of such information about the offender, and in the possession ofthe person giving the notification, as may be prescribed; and

(d) of any circumstances by virtue of which any payment oradjustment might fall to be made by virtue of section 62(6) or63(6).

(3) The High Court of Justiciary may, by Act of Adjournal, makeprovision requiring the clerk of the court in which any proceedings arecommenced that could result in a determination of a failure to complywith a relevant community order to notify the Secretary of State at suchtime and in such manner as may be specified in the Act of Adjournal of—

(a) the commencement of the proceedings;

(b) any such determination made in the proceedings;

(c) such information about the offender as may be so specified; and

(d) any circumstances by virtue of which any payment oradjustment might fall to be made by virtue of section 62(6) or63(6).



Part III(4) Where it appears to the Secretary of State that—

(a) the laying of any information that has been laid in England andWales, or

(b) the commencement of any proceedings that have beencommenced in Scotland,

could result in a determination the making of which would result in theimposition by or under one or both of sections 62 and 63 of anyrestrictions, it shall be the duty of the Secretary of State to notify theperson in whose case those restrictions would be imposed, or (as the casemay be) the members of any joint-claim couple in whose case they wouldbe imposed, of the consequences under those sections of such adetermination in the case of that person, or couple.

(5) A notification required to be given by the Secretary of State undersubsection (4) must be given as soon as reasonably practicable after it firstappears to the Secretary of State as mentioned in that subsection.

(6) The Secretary of State may by regulations make such provision ashe thinks fit for the purposes of sections 62 to 65 of this Act about—

(a) the use by a person within subsection (7) of information relatingto community orders or social security;

(b) the supply of such information by a person within thatsubsection to any other person (whether or not within thatsubsection); and

(c) the purposes for which a person to whom such information issupplied under the regulations may use it.

(7) The persons within this subsection are—

(a) the Secretary of State;

(b) a person providing services to the Secretary of State;

(c) a person employed or appointed by a probation committee;

(d) a person employed by a council constituted under section 2 of theLocal Government etc. (Scotland) Act 1994. 1994 c. 39.

(8) Regulations under subsection (6) may, in particular, authoriseinformation supplied to a person under the regulations—

(a) to be used for the purpose of amending or supplementing otherinformation held by that person; and

(b) where so used, to be supplied to any other person to whom, andused for any purpose for which, the information amended orsupplemented could be supplied or used.

(9) The explanation given to the offender by the court in pursuance ofsubsection (1) shall be treated as part of the explanation required to begiven to the offender for the purposes of section 228(5) or 238(4) of theCriminal Procedure (Scotland) Act 1995. 1995 c. 46.

(10) In this section “relevant community order” has the same meaningas in section 62.

(11) For the purposes of this section proceedings that could result insuch a determination as is mentioned in subsection (3) are commenced inScotland when, and only when, a warrant to arrest the offender or to citethe offender to appear before a court is issued under section 232(1) or239(4) of the Criminal Procedure (Scotland) Act 1995.



Part IIILoss of benefit 65.—(1) In the loss of benefit provisions “prescribed” means prescribedregulations. by or determined in accordance with regulations made by the Secretary

of State.

(2) Regulations prescribing a period for the purposes of any of the lossof benefit provisionsmay contain provision for determining the time fromwhich the period is to run.

(3) Regulations under any of the loss of benefit provisions shall bemade by statutory instrument which (except in the case of regulations towhich subsection (4) applies) shall be subject to annulment in pursuanceof a resolution of either House of Parliament.

(4) A statutory instrument containing (whether alone or with otherprovisions)—

(a) a provision prescribing the manner in which the applicableamount is to be reduced for the purposes of section 62(3),

(b) a provision prescribing the manner in which an amount of joint-claim jobseeker’s allowance is to be reduced for the purposes ofsection 63(3)(a),

(c) a provision the making of which is authorised by section 62(4)or 63(4),

(d) a provision prescribing benefits under the Social Security1992 c. 4.Contributions and Benefits Act 1992 as benefits that are to berelevant benefits for the purposes of section 62, or

(e) a provision that any description of order is to be a relevantcommunity order for the purposes of that section,

shall not be made unless a draft of the instrument has been laid before,and approved by a resolution of, each House of Parliament.

(5) Subsections (4) to (6) of section 189 of the Social Security1992 c. 5.Administration Act 1992 (supplemental and incidental powers etc.) shallapply in relation to any power tomake regulations that is conferred by theloss of benefit provisions as they apply in relation to the powers to makeregulations that are conferred by that Act.

(6) The provision that may be made in exercise of the powers to makeregulations that are conferred by the loss of benefit provisions shallinclude different provision for different areas.

(7) Where regulationsmade under section 62(8) prescribe a descriptionof order made under the Criminal Procedure (Scotland) Act 1995 as a1995 c. 46.relevant community order for the purposes of that section, the regulationsmay make such modifications of that section as appear to the Secretaryof State to be necessary in consequence of so prescribing.

(8) In this section “the loss of benefit provisions” means sections 62 to64 of this Act.

66. In paragraph 3 of Schedule 3 to the Social Security Act 1998Appeals relatingto loss of benefit. (decisions against which an appeal lies), after sub-paragraph (d) there1998 c. 14. shall be inserted “; or

(e) section 62 or 63 of the Child Support, Pensions and SocialSecurity Act 2000.”



Part IIIInvestigation powers

67. Schedule 6 to this Act (which amends the enforcement provisions Investigationpowers.contained in Part VI of the Social Security Administration Act 1992) shall1992 c. 5.have effect.

Housing benefit and council tax benefit etc.

68. Schedule 7 (which makes provision for the revision of decisions Housing benefitand council taxmade in connection with claims for housing benefit or council tax benefitbenefit: revisionsand for appeals against such decisions) shall have effect.and appeals.

Discretionary69.—(1) The Secretary of State may by regulations make provisionfinancialconferring a power on relevant authorities to make payments by way ofassistance withfinancial assistance (“discretionary housing payments”) to personshousing.who—

(a) are entitled to housing benefit or council tax benefit, or toboth; and

(b) appear to such an authority to require some further financialassistance (in addition to the benefit or benefits to which theyare entitled) in order to meet housing costs.

(2) Regulations under this section may include any of the following—

(a) provision prescribing the circumstances in which discretionaryhousing payments may be made under the regulations;

(b) provision conferring (subject to any provision made by virtue ofparagraph (c) or (d) of this subsection or an order under section70) a discretion on a relevant authority—

(i) as to whether or not to make discretionary housingpayments in a particular case; and

(ii) as to the amount of the payments and the period for orin respect of which they are made;

(c) provision imposing a limit on the amount of the discretionaryhousing payment that may be made in any particular case;

(d) provision restricting the period for or in respect of whichdiscretionary housing payments may be made;

(e) provision about the form and manner in which claims fordiscretionary housing payments are to be made and about theprocedure to be followed by relevant authorities in dealing withand disposing of such claims;

(f) provision imposing conditions on persons claiming or receivingdiscretionary housing payments requiring them to provide arelevant authority with such information as may be prescribed;

(g) provision entitling a relevant authority that are making or havemade a discretionary housing payment, in such circumstancesas may be prescribed, to cancel the making of further suchpayments or to recover a payment already made;

(h) provision requiring or authorising a relevant authority to reviewdecisions made by the authority with respect to the making,cancellation or recovery of discretionary housing payments.

(3) Regulations under this section shall be made by statutoryinstrument, which shall be subject to annulment in pursuance of aresolution of either House of Parliament.



Part III1992 c. 5. (4) Subsections (4) to (6) of section 189 of the Social Security

Administration Act 1992 (supplemental and incidental powers etc.) shallapply in relation to any power to make regulations under this section asthey apply in relation to the powers to make regulations that areconferred by that Act.

(5) Any power to make regulations under this section shall includepower to make different provision for different areas or different relevantauthorities.

(6) In section 176(1) of that Act (consultation with representativeorganisation on subordinate legislation relating to housing benefit orcouncil tax benefit), after paragraph (a) there shall be inserted—

“(aa) regulations under section 69 of the Child Support,Pensions and Social Security Act 2000;”.


“prescribed” means prescribed by or determined in accordance withregulations made by the Secretary of State; and

“relevant authority” means an authority administering housingbenefit or council tax benefit.

70.—(1) The Secretary of State may, out of money provided byGrants towardscost of Parliament, make to a relevant authority such payments as he thinks fitdiscretionary in respect of—housing payments.

(a) the cost to that authority of the making of discretionary housingpayments; and

(b) the expenses involved in the administration by that authority ofany scheme for the making of discretionary housing payments.

(2) The following provisions, namely—

(a) subsections (1), (3), (4), (5)(b), (7)(b) and (8) of section 140B ofthe Social Security Administration Act 1992 (calculation ofamount of subsidy payable to authorities administering housingbenefit or council tax benefit), and

(b) section 140C of that Act (payment of subsidy),

shall apply in relation to payments under this section as they apply inrelation to subsidy under section 140A of that Act.

(3) The Secretary of State may by order make provision—

(a) imposing a limit on the total amount of expenditure in any yearthat may be incurred by a relevant authority in makingdiscretionary housing payments;

(b) imposing subsidiary limits on the expenditure that may beincurred in any year by a relevant authority in makingdiscretionary housing payments in the circumstances specifiedin the order.

(4) An order imposing a limit by virtue of subsection (3)(a) or (b) mayfix that limit either by specifying the amount of the limit or by providingfor the means by which it is to be determined.

(5) An order under this section shall be made by statutory instrument,which shall be subject to annulment in pursuance of a resolution of eitherHouse of Parliament.



Part III1992 c. 5.(6) Subsections (4) to (6) of section 189 of the Social Security

Administration Act 1992 (supplemental and incidental powers etc.) shallapply in relation to any power to make an order under this section as theyapply in relation to the powers to make an order that are conferred bythat Act.

(7) Any power to make an order under this section shall include powerto make different provision for different areas or different relevantauthorities.


“discretionary housing payment” means any payment made byvirtue of regulations under section 69;

“relevant authority” means an authority administering housingbenefit or council tax benefit;

“subsidy” has the same meaning as in sections 140A to 140G of theSocial Security Administration Act 1992;

“year” means a financial year within the meaning of the Local 1992 c. 14.Government Finance Act 1992.

71. For subsection (3) of section 75 of the Social Security Recovery ofhousing benefit.Administration Act 1992 (overpayments of housing benefit) there shall be

substituted—

“(3) An amount recoverable under this section shall berecoverable—

(a) except in such circumstances as maybe prescribed, from theperson to whom it was paid; and

(b) where regulations so provide, from such other person (aswell as, or instead of, the person to whom it was paid) asmay be prescribed.”

Child benefit

72. In section 143(3)(c) of the Social Security Contributions and Child benefitdisregards.Benefits Act 1992 (disregard of days of absence in the case of children in1992 c. 4.residential accommodation in pursuance of arrangements made under

the specified enactments), for sub-paragraph (iii) and the word “or”immediately preceding it there shall be substituted—

“(iii) the Social Work (Scotland) Act 1968; 1968 c. 49.

1978 c. 29.(iv) the National Health Service (Scotland) Act 1978;(v) the Education (Scotland) Act 1980; 1980 c. 44.

1984 c. 36.(vi) the Mental Health (Scotland) Act 1984; or(vii) the Children (Scotland) Act 1995.” 1995 c. 36.

Social Security Advisory Committee

73.—(1) Section 170 of the Social Security Administration Act 1992 Social SecurityAdvisory(functions of the Social Security Advisory Committee in relation to theCommittee.relevant enactments and the relevant Northern Ireland enactments) shall

be amended as follows.

(2) In the definition in subsection (5) of “relevant enactments”, afterparagraph (ae) there shall be inserted—



Part III“(af) section 42, sections 62 to 65 and sections 68 to 70 of the

Child Support Pensions and Social Security Act 2000 andSchedule 7 to that Act;”.

(3) In the definition in that subsection of “relevant Northern Irelandenactments”, after paragraph (ae) there shall be inserted—

“(af) any provisions in Northern Ireland which correspond tosection 42, any of sections 62 to 65, 68 to 70 of the ChildSupport, Pensions and Social Security Act 2000 orSchedule 7 to that Act; and”.

Part IV

National Insurance Contributions

Great Britain

74.—(1) In section 1(2)(b) of the Social Security Contributions andContributions inrespect of benefits Benefits Act 1992 (Class 1A contributions), the words “in respect of carsin kind: Great made available for private use and car fuel” shall be omitted.Britain.

(2) For section 10 of that Act (Class 1A contributions) there shall be1992 c. 4.substituted—

“Class 1A 10.—(1) Where—contributions:

(a) for any tax year an earner is chargeable to incomebenefits in kindtaxunderScheduleEonanamountwhich for theetc.purposes of the Income Tax Acts is or falls to betreated as an emolument received by him fromany employment (‘the relevant employment’),

(b) the relevant employment is both employedearner’s employment and employment to whichChapter II of Part V of the 1988 Act(employment as a director or with annualemoluments of more than £8,500) applies, and

(c) the whole or a part of the emolument falls, for thepurposes of Class 1 contributions, to be left outof account in the computation of the earningspaid to or for the benefit of the earner,

a Class 1A contribution shall be payable for that tax year,in accordance with this section, in respect of that earnerand so much of the emolument as falls to be so left out ofaccount.

(2) Subject to section 10ZA below, a Class 1Acontribution for any tax year shall be payable by—

(a) the person who is liable to pay the secondaryClass 1 contribution relating to the last (or only)relevant payment of earnings in that tax year inrelation to which there is a liability to pay sucha Class 1 contribution; or

(b) if paragraph (a) above does not apply, the personwho, if the emolument in respect of which theClass 1A contribution is payable were earningsin respect of which Class 1 contributions wouldbe payable, would be liable to pay the secondaryClass 1 contribution.



Part IV(3) In subsection (2) above ‘relevant payment of

earnings’ means a payment which for the purposes ofClass 1 contributions is a payment of earnings made to orfor the benefit of the earner in respect of the relevantemployment.

(4) The amount of the Class 1A contribution in respectof any emolument shall be the Class 1A percentage of somuch of it as falls to be left out of account as mentionedin subsection (1)(c) above.

(5) In subsection (4) above ‘the Class 1A percentage’means a percentage rate equal to the percentage ratespecified as the secondary percentage in section 9(2)above for the tax year in question.

(6) No Class 1A contribution shall be payable for anytax year in respect of so much of any emolument as istaken for the purposes of the making of Class 1Bcontributions for that year to be included in a PAYEsettlement agreement.


(a) the amounts which for the purposes of theIncome Tax Acts are or fall to be treated asemoluments received by an earner from anyemployment shall be determined (subject toparagraph (b) below) disregarding sections 198,201, 201AA and 332(3) of the 1988 Act(deductions for expenses etc.); but

(b) where an amount which is deductible in respectof any matter under any of those sections is atleast equal to the whole of any correspondingamount which (but for this paragraph) wouldfall by reference to that matter to be included inthose emoluments, the whole of thecorresponding amount shall be treated as not soincluded.

(8) The Treasury may by regulations—

(a) modify the effect of subsection (7) above byadding any enactment contained in the IncomeTax Acts to the list of sections of the 1988 Actcontained in paragraph (a) of that subsection;or

(b) make such amendments of subsection (7) aboveas appear to them to be necessary or expedientin consequence of any alteration of theprovisions of the Income Tax Acts relating tothe charge to tax under Schedule E.

(9) The Treasury may by regulations provide—

(a) for Class 1A contributions not to be payable, inprescribed circumstances, by prescribed personsor in respect of prescribed persons oremoluments;



Part IV(b) for reducing Class 1A contributions in

prescribed circumstances.

(10) In this section ‘the 1988 Act’ means the Income1988 c. 1.and Corporation Taxes Act 1988.”

(3) For subsection (6) of section 4 of that Act (power to treatemoluments in respect of share acquisitions etc. as earnings) there shallbe substituted—

“(6) Regulations may make provision for the purposes of thisPart—

(a) for treating any amount on which an employed earner ischargeable to income tax under Schedule E asremuneration derived from the earner’s employment; and

(b) for treating any amount which in accordance withregulations under paragraph (a) above constitutesremuneration as an amount of remuneration paid, at suchtime as may be determined in accordance with theregulations, to or for the benefit of the earner in respect ofhis employment.”

(4) In paragraph 5(b) of Schedule 1 to that Act (power to modifysection 10 for cases where a car is made available by reason of more thanone employment), for “a car is made available” there shall be substituted“something is provided or made available”.

(5) In paragraph 8(1)(ia) of that Schedule (power to provide byregulations for repayment in prescribed cases of the whole or a part of aClass 1B contribution), after “part” there shall be inserted “of a Class1A or”.

(6) In section 120(4) of the Social Security Administration Act 19921992 c. 5.(proof of previous offences relating to Class 1A contributions), for “car”there shall be substituted “amount”.

(7) In section 162(5)(c) of that Act (appropriate national health serviceallocation ofClass 1A contributions), for “cash equivalents of the benefitsof the cars and car fuel” there shall be substituted “emoluments”.

(8) This section shall have effect in relation to the tax year beginningwith 6th April 2000 and subsequent tax years.

(9) Regulations made by statutory instrument under any powerconferred by virtue of this section may be made so as to have retrospectiveeffect in relation to any time in the tax year in which they are made(including, in the case of regulations made in the tax year in which thisAct is passed, any time in that tax year before the passing of this Act).

75.—(1) After section 10 of the Social Security Contributions andThird partyproviders of Benefits Act 1992 there shall be inserted—benefits in kind:

“Liability of 10ZA.—(1) This section applies, where—Great Britain.third party1992 c. 4. (a) a Class 1A contribution is payable for any taxprovider of

year in respect of the whole or any part of anbenefits in kind.emolument received by an earner;

(b) the emolument, in so far as it is one in respect ofwhich such a contribution is payable, consists ina benefit provided for the earner or a member of



Part IVhis family or household;

(c) the person providing the benefit is a person otherthan the person (‘the relevant employer’) bywhom, but for this section, the Class 1Acontribution would be payable in accordancewith section 10(2) above; and

(d) the provision of the benefit by that other personhas not been arranged or facilitated by therelevant employer.

(2) For the purposes of this Act if—

(a) the person providing the benefit pays an amountfor the purpose of discharging any liability ofthe earner to income tax for any tax year, and

(b) the income tax in question is tax chargeable inrespect of the provision of the benefit or of themaking of the payment itself,

the amount of the payment shall be treated as if it were anemolument consisting in the provision of a benefit to theearner in that tax year and falling, for the purposes ofClass 1 contributions, to be left out of account in thecomputation of the earnings paid to or for the benefit ofthe earner.

(3) Subject to subsection (4) below, the liability to payany Class 1A contribution in respect of—

(a) the benefit provided to the earner, and

(b) any further benefit treated as so provided inaccordance with subsection (2) above,

shall fall on the person providing the benefit, instead of onthe relevant employer.

(4) Subsection (3) above applies in the case of a Class1A contribution for the tax year beginning with 6th April2000 only if the person providing the benefit in questiongives notice in writing to the Inland Revenue on or before6th July 2001 that he is a person who provides benefits inrespect of which a liability to Class 1A contributions iscapable of falling by virtue of this section on a personother than the relevant employer.

(5) The Treasury may by regulations make provisionspecifying the circumstances in which a person is or is notto be treated for the purposes of this Act as havingarranged or facilitated the provision of any benefit.

(6) In this section references to a member of a person’sfamily or household shall be construed in accordancewithsection 168(4) of the Income and Corporation Taxes 1988 c. 1.Act 1988.

Non-cash 10ZB.—(1) In section 10ZA above references to thevouchers provision of a benefit include references to the provisionprovided by of a non-cash voucher.third parties.

(2) Where—



Part IV

(a) a non-cash voucher is received by any personfrom employment to which Chapter II of Part Vof the Income and Corporation Taxes Act 19881988 c. 1.does not apply, and

(b) the case would be one in which the conditions insection 10ZA(1)(a) to (d) above would besatisfied in relation to the provision of thatvoucher if that Chapter did apply to thatemployment,

sections 10 and 10ZA above shall have effect in relation tothe provision of that voucher, and to any such payment inrespect of the provision of that voucher as is mentioned insection 10ZA(2) above, as if that employment wereemployment to which that Chapter applied.

(3) In this section ‘non-cash voucher’ has the samemeaning as in section 141 of the Income and CorporationTaxes Act 1988.”

(2) After subsection (3) of section 110ZA of the Social Security1992 c. 5.Administration Act 1992 (premises liable to inspection) there shall beinserted—

“(3A) The references in subsection (3) above to a trade orbusiness include references to the administration of any scheme forthe provision of benefits to persons by reason of their employment.”

(3) Subsection (1) shall have effect in relation to the tax year beginningwith 6th April 2000 and subsequent tax years.

(4) Regulations made by virtue of this section under section 10ZA(5)of the Social Security Contributions and Benefits Act 1992 may be made1992 c. 4.so as to have retrospective effect in relation to any time in the tax year inwhich they are made (including, in the case of regulations made in the taxyear in which this Act is passed, any time in that tax year before thepassing of this Act).

76.—(1) Schedule 1 to the Social Security Contributions and BenefitsCollection etc. ofNICs: Great Act 1992 (supplementary provisions relating to contributions) shall beBritain. amended in accordance with subsections (2) to (5).

(2) In paragraph 7(2)(b) (application of sections 100 to 100D and 102to 104 of the TaxesManagement Act 1970 in relation to certain penalties),1970 c. 9.for “104” there shall be substituted “105”.

(3) For sub-paragraph (2)(e) of paragraph 7B (power to provide forinterest to be charged on late payment in the case of payment outside thePAYE system) there shall be substituted—

“(e) require interest to be paid on contributions that are notpaid by the due date, and provide for determining the datefrom which such interest is to be calculated;”.

(4) After sub-paragraph (5) of that paragraph there shall be inserted—

“(5A) Regulations under this paragraph may, in relation to anypenalty imposed by such regulations, make provision applying (withor without modifications) any enactment applying for the purposesof income tax that is contained in Part X of the Taxes ManagementAct 1970 (penalties).”



Part IV(5) After that paragraph there shall be inserted—

“7BA. The Inland Revenue may by regulations provide foramounts in respect of contributions or interest that fall to be paid orrepaid in accordance with any regulations under this Schedule to beset off, or to be capable of being set off, in prescribed circumstancesand to the prescribed extent, against any such liabilities underregulations under this Schedule of the person entitled to the paymentor repayment as may be prescribed.”

(6) In section 8(1) of the Social Security Contributions (Transfer of 1999 c. 2.Functions, etc.) Act 1999 (decisions to be made by an Inland Revenueofficer and appealable under section 11)—

(a) paragraph (j) (interest under regulations made by virtue ofparagraph 7B(2)(e) of Schedule 1 to the Social Security 1992 c. 4.Contributions and Benefits Act 1992) shall cease to haveeffect; and

(b) in paragraph (l), for “paragraphs (j) and (k)” there shall besubstituted “paragraph (k)”, and the words “amount of interestor” shall be omitted.

(7) Subsection (6) has effect in relation to interest accruing on sumsbecoming due in respect of the tax year beginning with 6th April 2000 orany subsequent tax year.

77.—(1) In paragraph 3 of Schedule 1 to the Social Security Liability of earnerfor secondaryContributions and Benefits Act 1992 (prohibition on deduction orcontributions:recovery of Class 1 contributions), sub-paragraph (2) shall be omitted.Great Britain.

(2) After that paragraph there shall be inserted—

“Prohibition on recovery of employer’s contributions

3A.—(1) Subject to sub-paragraph (2) below, a person who is orhas been liable to pay any secondaryClass 1 or any Class 1Aor Class1B contributions shall not—

(a) make, from earnings paid by him, any deduction in respectof any such contributions for which he or any other personis or has been liable;

(b) otherwise recover any such contributions (directly orindirectly) from any person who is or has been a relevantearner; or

(c) enter into any agreement with any person for the making ofany such deduction or otherwise for the purpose of sorecovering any such contributions.

(2) Sub-paragraph (1) above does not apply to the extent that anagreement between—

(a) a secondary contributor, and

(b) any person (‘the earner’) in relation to whom the secondarycontributor is, was or will be such a contributor in respectof the contributions to which the agreement relates,

allows the secondary contributor to recover (whether by deductionor otherwise) the whole or any part of any secondary Class 1contribution payable in respect of a gain that is treated asremuneration derived from that earner’s employment by virtue ofsection 4(4)(a) above.



Part IV(3) Sub-paragraph (2) above does not authorise any recovery

(whether by deduction or otherwise)—

(a) in pursuance of any agreement entered into before 19thMay 2000; or

(b) in respect of any liability to a contribution arising beforethe day of the passing of the Child Support, Pensions andSocial Security Act 2000.

(4) In this paragraph—

‘agreement’ includes any arrangement or understanding(whether or not legally enforceable); and

‘relevant earner’, in relation to a person who is or has beenliable to pay any contributions, means an earner in respectof whom he is or has been so liable.

Transfer of liability to be borne by earner

3B.—(1) This paragraph applies where—

(a) an election is jointly made by—

(i) a secondary contributor, and

(ii) a person (‘the earner’) in relation to whom thesecondary contributor is or will be such a contributor inrespect of contributions on share option gains by theearner,

for the whole or a part of any liability of the secondarycontributor to contributions on any such gains to betransferred to the earner; and

(b) the election is one in respect of which the Inland Revenuehave, before it was made, given by notice to the secondarycontributor their approval to both—

(i) the form of the election; and

(ii) the arrangements made in relation to theproposed election for securing that the liabilitytransferred by the election will be met.

(2) Any liability which—

(a) arises while the election is in force, and

(b) is a liability to pay the contributions on share option gainsby the earner, or the part of them, to which the electionrelates,

shall be treated for the purposes of this Act, the Administration Actand Part II of the Social Security Contributions (Transfer of1999 c. 2.Functions, etc.) Act 1999 as a liability falling on the earner, insteadof on the secondary contributor.

(3) Subject to sub-paragraph (7)(b) below, an election made forthe purposes of sub-paragraph (1) above shall continue in force fromthe time when it is made until whichever of the following first occurs,namely—

(a) it ceases to have effect in accordance with its terms;

(b) it is revoked jointly by both parties to the election;



Part IV(c) notice is given to the earner by the secondary contributor

terminating the effect of the election.

(4) An approval given to the secondary contributor for thepurposes of sub-paragraph (1)(b) above may be given either—

(a) for an election to be made by the secondary contributor anda particular person; or

(b) for all elections to be made, or to be made in particularcircumstances, by the secondary contributor andparticular persons or by the secondary contributor andpersons of a particular description.

(5) The grounds on which the Inland Revenue shall be entitled torefuse an approval for the purposes of sub-paragraph (1)(b) aboveshall include each of the following—

(a) that it appears to the Inland Revenue that adequatearrangements have not been made for securing that theliabilities transferred by the proposed election or electionswill be met by the person or persons to whom they wouldbe so transferred; and

(b) that it appears to the Inland Revenue that they do not havesufficient information to determine whether or notgrounds falling within paragraph (a) above exist.

(6) If, at any time after they have given an approval for thepurposes of sub-paragraph (1)(b) above, it appears to the InlandRevenue—

(a) that the arrangements that were made or are in force forsecuring that liabilities transferred by elections to whichthe approval relates are met are proving inadequate orunsatisfactory in any respect, or

(b) that any election to which the approval relates has resulted,or is likely to result, in the avoidance or non-payment ofthe whole or any part of any secondary Class 1contributions,

the Inland Revenue may withdraw the approval by notice to thesecondary contributor.

(7) The withdrawal by the Inland Revenue of any approval givenfor the purposes of sub-paragraph (1)(b) above—

(a) may be either general or confined to a particular election orto particular elections; and

(b) shall have the effect that the election to which thewithdrawal relates has no effect on contributions on shareoption gains in respect of any right to acquire sharesobtained after—

(i) the date on which notice of the withdrawal of theapproval is given; or

(ii) such later date as the Inland Revenue may specifyin that notice.

(8) Where the Inland Revenue have refused or withdrawn theirapproval for the purposes of sub-paragraph (1)(b) above, the person



Part IVwho applied for it or, as the case may be, to whom it was given mayappeal to the Special Commissioners against the Inland Revenue’sdecision.

(9) On an appeal under sub-paragraph (8) above the SpecialCommissioners may—

(a) dismiss the appeal;

(b) remit the decision appealed against to the Inland Revenuewith a direction to make such decision as the SpecialCommissioners think fit; or

(c) in the case of a decision to withdraw an approval, quashthat decision and direct that that decision is to be treatedas never having been made.

(10) Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respectof gains realised before it was made.

(11) Regulations made by the Inland Revenue may makeprovision with respect to the making of elections for the purposes ofthis paragraph and the giving of approvals for the purposes of sub-paragraph (1)(b) above; and any such regulations may, inparticular—

(a) prescribe the matters that must be contained in such anelection;

(b) provide for the manner in which such an election is to becapable of being made and of being confined to particularliabilities or the part of particular liabilities; and

(c) provide for the making of applications for such approvalsand for the manner in which those applications are to bedealt with.

(12) Where—

(a) an election is made under this paragraph before the end ofthe period of three months beginning with the date of thepassing of the Child Support, Pensions and Social SecurityAct 2000, and

(b) that election is expressed to relate to liabilities forcontributions arising on or after 19th May 2000 and beforethe making of the election,

this paragraph shall have effect in relation to those liabilities as ifsub-paragraph (2) above provided for them to be deemed to havefallen on the earner (instead of on the secondary contributor); andthe secondary contributor shall accordingly be entitled toreimbursement from the earner for any payment made by thatcontributor in or towards the discharge of any of those liabilities.

(13) In this paragraph references to contributions on shareoption gains by the earner are references to any secondary Class 1contributions payable in respect of a gain that is treated asremuneration derived from the earner’s employment by virtue ofsection 4(4)(a) above.

(14) In this paragraph ‘the Special Commissioners’ means theCommissioners for the special purposes of the Income Tax Acts.”



Part IV(3) In section 6(4) of that Act (persons by whom Class 1 contributions

are payable), for the words from “paragraph 3” onwards there shall besubstituted “paragraphs 3 to 3B of Schedule 1 to this Act.”

(4) In paragraph 8(1) of Schedule 1 to that Act (general regulations),after paragraph (c) there shall be inserted—

“(ca) for requiring a secondary contributor to notify a personto whom any of his liabilities are transferred by an electionunder paragraph 3B above of—

(i) any transferred liability that arises;(ii) the amount of any transferred liability that

arises; and

(iii) the contents of any notice of withdrawal by theInland Revenue of any approval that relates to thatelection;”.

(5) In section 8(1) of the Social Security Contributions (Transfer of 1999 c. 2.Functions, etc.) Act 1999 (decisions to be taken by officers of the InlandRevenue), after paragraph (i) there shall be inserted—

“(ia) to decide whether to give or withdraw an approval for thepurposes of paragraph 3B(1)(b) of Schedule 1 to the SocialSecurity Contributions and Benefits Act 1992;”. 1992 c. 4.

(6) In section 10 of that Act of 1999 (regulations about varying orsuperseding decisions), at the beginning of subsection (1) there shall beinserted “Subject to subsection (2A) below,”, and after subsection (2)there shall be inserted—

“(2A) The decisions in relation to which provision may be madeby regulations under this section shall not include decisions fallingwithin section 8(1)(ia) above.”

(7) In section 12(4) of that Act of 1999 (appeals to be heard by GeneralCommissioners), after “Subject to” there shall be inserted “paragraph3B(8) of Schedule 1 to the Social Security Contributions and Benefits Act1992 (which provides for appeals under that paragraph to be heard by theSpecial Commissioners), to”.

Northern Ireland

78.—(1) In section 1(2)(b) of the Social Security Contributions and Contributions inrespect of benefitsBenefits (Northern Ireland) Act 1992 (Class 1A contributions), the wordsin kind: Northern“in respect of cars made available for private use and car fuel” shall beIreland.omitted.1992 c. 7.

(2) For section 10 of that Act (Class 1A contributions) there shall besubstituted—

“Class 1A 10.—(1) Where—contributions:

(a) for any tax year an earner is chargeable to incomebenefits in kindtaxunderScheduleEonanamountwhich for theetc.purposes of the Income Tax Acts is or falls to betreated as an emolument received by him fromany employment (‘the relevant employment’),

(b) the relevant employment is both employedearner’s employment and employment to which



Part IVChapter II of Part V of the 1988 Act(employment as a director or with annualemoluments of more than £8,500) applies, and

(c) the whole or a part of the emolument falls, for thepurposes of Class 1 contributions, to be left outof account in the computation of the earningspaid to or for the benefit of the earner,

a Class 1A contribution shall be payable for that tax year,in accordance with this section, in respect of that earnerand so much of the emolument as falls to be so left out ofaccount.

(2) Subject to section 10ZA below, a Class 1Acontribution for any tax year shall be payable by—

(a) the person who is liable to pay the secondaryClass 1 contribution relating to the last (or only)relevant payment of earnings in that tax year inrelation to which there is a liability to pay sucha Class 1 contribution; or

(b) if paragraph (a) above does not apply, the personwho, if the emolument in respect of which theClass 1A contribution is payable were earningsin respect of which Class 1 contributions wouldbe payable, would be liable to pay the secondaryClass 1 contribution.

(3) In subsection (2) above ‘relevant payment ofearnings’ means a payment which for the purposes ofClass 1 contributions is a payment of earnings made to orfor the benefit of the earner in respect of the relevantemployment.

(4) The amount of the Class 1A contribution in respectof any emolument shall be the Class 1A percentage of somuch of it as falls to be left out of account as mentionedin subsection (1)(c) above.

(5) In subsection (4) above ‘the Class 1A percentage’means a percentage rate equal to the percentage ratespecified as the secondary percentage in section 9(2)above for the tax year in question.

(6) No Class 1A contribution shall be payable for anytax year in respect of so much of any emolument as istaken for the purposes of the making of Class 1Bcontributions for that year to be included in a PAYEsettlement agreement.


(a) the amounts which for the purposes of theIncome Tax Acts are or fall to be treated asemoluments received by an earner from anyemployment shall be determined (subject toparagraph (b) below) disregarding sections 198,201, 201AA and 332(3) of the 1988 Act(deductions for expenses etc.); but



Part IV(b) where an amount which is deductible in respect

of any matter under any of those sections is atleast equal to the whole of any correspondingamount which (but for this paragraph) wouldfall by reference to that matter to be included inthose emoluments, the whole of thecorresponding amount shall be treated as not soincluded.

(8) The Treasury may by regulations—

(a) modify the effect of subsection (7) above byadding any enactment contained in the IncomeTax Acts to the list of sections of the 1988 Actcontained in paragraph (a) of that subsection;or

(b) make such amendments of subsection (7) aboveas appear to them to be necessary or expedientin consequence of any alteration of theprovisions of the Income Tax Acts relating tothe charge to tax under Schedule E.

(9) The Treasury may by regulations provide—

(a) for Class 1A contributions not to be payable, inprescribed circumstances, by prescribed personsor in respect of prescribed persons oremoluments;

(b) for reducing Class 1A contributions inprescribed circumstances.

(10) In this section ‘the 1988 Act’ means the Income 1988 c. 1.and Corporation Taxes Act 1988.”

(3) For subsection (6) of section 4 of that Act (power to treatemoluments in respect of share acquisitions etc. as earnings) there shallbe substituted—

“(6) Regulations may make provision for the purposes of thisPart—

(a) for treating any amount on which an employed earner ischargeable to income tax under Schedule E asremuneration derived from the earner’s employment; and

(b) for treating any amount which in accordance withregulations under paragraph (a) above constitutesremuneration as an amount of remuneration paid, at suchtime as may be determined in accordance with theregulations, to or for the benefit of the earner in respect ofhis employment.”

(4) In paragraph 5(b) of Schedule 1 to that Act (power to modifysection 10 for cases where a car is made available by reason of more thanone employment), for “a car is made available” there shall be substituted“something is provided or made available”.

(5) In paragraph 8(1)(ia) of that Schedule (power to provide byregulations for repayment in prescribed cases of the whole or a part of aClass 1B contribution), after “part” there shall be inserted “of a Class1A or”.



Part IV1992 c. 8. (6) In section 114(4) of the Social Security Administration (Northern

Ireland) Act 1992 (proof of previous offences relating to Class 1Acontributions), for “car” there shall be substituted “amount”.

(7) In section 142(5)(c) of that Act (appropriate health serviceallocation ofClass 1A contributions), for “cash equivalents of the benefitsof the cars and car fuel” there shall be substituted “emoluments”.

(8) This section shall have effect in relation to the tax year beginningwith 6th April 2000 and subsequent tax years.

(9) Regulations made by statutory instrument under any powerconferred by virtue of this section may be made so as to have retrospectiveeffect in relation to any time in the tax year in which they are made(including, in the case of regulations made in the tax year in which thisAct is passed, any time in that tax year before the passing of this Act).

79.—(1) After section 10 of the Social Security Contributions andThird partyproviders of Benefits (Northern Ireland) Act 1992 there shall be inserted—benefits in kind:Northern Ireland. “Liability of 10ZA.—(1) This section applies, where—

third party1992 c. 7. (a) a Class 1A contribution is payable for any taxprovider ofyear in respect of the whole or any part of anbenefits in kind.emolument received by an earner;

(b) the emolument, in so far as it is one in respect ofwhich such a contribution is payable, consists ina benefit provided for the earner or a member ofhis family or household;

(c) the person providing the benefit is a person otherthan the person (‘the relevant employer’) bywhom, but for this section, the Class 1Acontribution would be payable in accordancewith section 10(2) above; and

(d) the provision of the benefit by that other personhas not been arranged or facilitated by therelevant employer.

(2) For the purposes of this Act if—

(a) the person providing the benefit pays an amountfor the purpose of discharging any liability ofthe earner to income tax for any tax year, and

(b) the income tax in question is tax chargeable inrespect of the provision of the benefit or of themaking of the payment itself,

the amount of the payment shall be treated as if it were anemolument consisting in the provision of a benefit to theearner in that tax year and falling, for the purposes ofClass 1 contributions, to be left out of account in thecomputation of the earnings paid to or for the benefit ofthe earner.

(3) Subject to subsection (4) below, the liability to payany Class 1A contribution in respect of—

(a) the benefit provided to the earner, and



Part IV(b) any further benefit treated as so provided in

accordance with subsection (2) above,

shall fall on the person providing the benefit, instead of onthe relevant employer.

(4) Subsection (3) above applies in the case of a Class1A contribution for the tax year beginning with 6th April2000 only if the person providing the benefit in questiongives notice in writing to the Inland Revenue on or before6th July 2001 that he is a person who provides benefits inrespect of which a liability to Class 1A contributions iscapable of falling by virtue of this section on a personother than the relevant employer.

(5) The Treasury may by regulations make provisionspecifying the circumstances in which a person is or is notto be treated for the purposes of this Act as havingarranged or facilitated the provision of any benefit.

(6) In this section references to a member of a person’sfamily or household shall be construed in accordancewithsection 168(4) of the Income and Corporation Taxes 1988 c. 1.Act 1988.

Non-cash 10ZB.—(1) In section 10ZA above references to thevouchers provision of a benefit include references to the provisionprovided by of a non-cash voucher.third parties.

(2) Where—

(a) a non-cash voucher is received by any personfrom employment to which Chapter II of Part Vof the Income and Corporation Taxes Act 1988does not apply, and

(b) the case would be one in which the conditions insection 10ZA(1)(a) to (d) above would besatisfied in relation to the provision of thatvoucher if that Chapter did apply to thatemployment,

sections 10 and 10ZA above shall have effect in relation tothe provision of that voucher, and to any such payment inrespect of the provision of that voucher as is mentioned insection 10ZA(2) above, as if that employment wereemployment to which that Chapter applied.

(3) In this section ‘non-cash voucher’ has the samemeaning as in section 141 of the Income and CorporationTaxes Act 1988.”

(2) After subsection (3) of section 104ZA of the Social Security 1992 c. 8.Administration (Northern Ireland) Act 1992 (premises liable toinspection) there shall be inserted—

“(3A) The references in subsection (3) above to a trade orbusiness include references to the administration of any scheme forthe provision of benefits to persons by reason of their employment.”

(3) Subsection (1) shall have effect in relation to the tax year beginningwith 6th April 2000 and subsequent tax years.



Part IV(4) Regulations made by virtue of this section under section 10ZA(5)

of the Social Security Contributions and Benefits (Northern Ireland) Act1992 c. 7.1992 may be made so as to have retrospective effect in relation to any timein the tax year inwhich they aremade (including, in the case of regulationsmade in the tax year in which this Act is passed, any time in that tax yearbefore the passing of this Act).

80.—(1) Schedule 1 to the Social Security Contributions and BenefitsCollection etc. ofNICs: Northern (Northern Ireland) Act 1992 (supplementary provisions relating toIreland. contributions) shall be amended in accordance with subsections (2) to (5).

(2) In paragraph 7(2)(b) (application of sections 100 to 100D and 102to 104 of the TaxesManagement Act 1970 in relation to certain penalties),1970 c. 9.for “104” there shall be substituted “105”.

(3) For sub-paragraph (2)(e) of paragraph 7B (power to provide forinterest to be charged on late payment in the case of payment outside thePAYE system) there shall be substituted—

“(e) require interest to be paid on contributions that are notpaid by the due date, and provide for determining the datefrom which such interest is to be calculated;”.

(4) After sub-paragraph (5) of that paragraph there shall be inserted—

“(5A) Regulations under this paragraph may, in relation to anypenalty imposed by such regulations, make provision applying (withor without modifications) any enactment applying for the purposesof income tax that is contained in Part X of the Taxes ManagementAct 1970 (penalties).”


“7BA. The Inland Revenue may by regulations provide foramounts in respect of contributions or interest that fall to be paid orrepaid in accordance with any regulations under this Schedule to beset off, or to be capable of being set off, in prescribed circumstancesand to the prescribed extent, against any such liabilities underregulations under this Schedule of the person entitled to the paymentor repayment as may be prescribed.”

(6) In Article 7(1) of the Social Security Contributions (Transfer ofS.I. 1999/671.Functions, etc.) (Northern Ireland) Order 1999 (decisions to be made byan Inland Revenue officer and appealable under Article 10)—

(a) sub-paragraph (j) (interest under regulations made by virtue ofparagraph 7B(2)(e) of Schedule 1 to the Social SecurityContributions and Benefits (Northern Ireland) Act 1992) shallcease to have effect; and

(b) in sub-paragraph (l), for “sub-paragraphs (j) and (k)” there shallbe substituted “sub-paragraph (k)”, and the words “amount ofinterest or” shall be omitted.

(7) Subsection (6) has effect in relation to interest accruing on sumsbecoming due in respect of the tax year beginning with 6th April 2000 orany subsequent tax year.



Part IVLiability of earner81.—(1) In paragraph 3 of Schedule 1 to the Social Securityfor secondaryContributions and Benefits (Northern Ireland) Act 1992 (prohibition oncontributions:deduction or recovery of Class 1 contributions), sub-paragraph (2) shallNorthern Ireland.be omitted.1992 c. 7.


“Prohibition on recovery of employer’s contributions

3A.—(1) Subject to sub-paragraph (2) below, a person who is orhas been liable to pay any secondaryClass 1 or any Class 1Aor Class1B contributions shall not—

(a) make, from earnings paid by him, any deduction in respectof any such contributions for which he or any other personis or has been liable;

(b) otherwise recover any such contributions (directly orindirectly) from any person who is or has been a relevantearner; or

(c) enter into any agreement with any person for the making ofany such deduction or otherwise for the purpose of sorecovering any such contributions.

(2) Sub-paragraph (1) above does not apply to the extent that anagreement between—

(a) a secondary contributor, and

(b) any person (‘the earner’) in relation to whom the secondarycontributor is, was or will be such a contributor in respectof the contributions to which the agreement relates,

allows the secondary contributor to recover (whether by deductionor otherwise) the whole or any part of any secondary Class 1contribution payable in respect of a gain that is treated asremuneration derived from that earner’s employment by virtue ofsection 4(4)(a) above.

(3) Sub-paragraph (2) above does not authorise any recovery(whether by deduction or otherwise)—

(a) in pursuance of any agreement entered into before 19thMay 2000; or

(b) in respect of any liability to a contribution arising beforethe day of the passing of the Child Support, Pensions andSocial Security Act 2000.


‘agreement’ includes any arrangement or understanding(whether or not legally enforceable); and

‘relevant earner’, in relation to a person who is or has beenliable to pay any contributions, means an earner in respectof whom he is or has been so liable.

Transfer of liability to be borne by earner

3B.—(1) This paragraph applies where—

(a) an election is jointly made by—

(i) a secondary contributor, and



Part IV(ii) a person (‘the earner’) in relation to whom the

secondary contributor is or will be such a contributor inrespect of contributions on share option gains by theearner,

for the whole or a part of any liability of the secondarycontributor to contributions on any such gains to betransferred to the earner; and

(b) the election is one in respect of which the Inland Revenuehave, before it was made, given by notice to the secondarycontributor their approval to both—

(i) the form of the election; and(ii) the arrangements made in relation to the

proposed election for securing that the liabilitytransferred by the election will be met.

(2) Any liability which—

(a) arises while the election is in force, and

(b) is a liability to pay the contributions on share option gainsby the earner, or the part of them, to which the electionrelates,

shall be treated for the purposes of this Act, the Administration Actand Part III of the Social Security Contributions (Transfer ofS.I. 1999/671.Functions, etc.) (Northern Ireland) Order 1999 as a liability fallingon the earner, instead of on the secondary contributor.

(3) Subject to sub-paragraph (7)(b) below, an election made forthe purposes of sub-paragraph (1) above shall continue in force fromthe time when it is made until whichever of the following first occurs,namely—

(a) it ceases to have effect in accordance with its terms;

(b) it is revoked jointly by both parties to the election;

(c) notice is given to the earner by the secondary contributorterminating the effect of the election.

(4) An approval given to the secondary contributor for thepurposes of sub-paragraph (1)(b) above may be given either—

(a) for an election to be made by the secondary contributor anda particular person; or

(b) for all elections to be made, or to be made in particularcircumstances, by the secondary contributor andparticular persons or by the secondary contributor andpersons of a particular description.

(5) The grounds on which the Inland Revenue shall be entitled torefuse an approval for the purposes of sub-paragraph (1)(b) aboveshall include each of the following—

(a) that it appears to the Inland Revenue that adequatearrangements have not been made for securing that theliabilities transferred by the proposed election or electionswill be met by the person or persons to whom they wouldbe so transferred; and

(b) that it appears to the Inland Revenue that they do not havesufficient information to determine whether or notgrounds falling within paragraph (a) above exist.



Part IV(6) If, at any time after they have given an approval for the

purposes of sub-paragraph (1)(b) above, it appears to the InlandRevenue—

(a) that the arrangements that were made or are in force forsecuring that liabilities transferred by elections to whichthe approval relates are met are proving inadequate orunsatisfactory in any respect, or

(b) that any election to which the approval relates has resulted,or is likely to result, in the avoidance or non-payment ofthe whole or any part of any secondary Class 1contributions,

the Inland Revenue may withdraw the approval by notice to thesecondary contributor.

(7) The withdrawal by the Inland Revenue of any approval givenfor the purposes of sub-paragraph (1)(b) above—

(a) may be either general or confined to a particular election orto particular elections; and

(b) shall have the effect that the election to which thewithdrawal relates has no effect on contributions on shareoption gains in respect of any right to acquire sharesobtained after—

(i) the date on which notice of the withdrawal of theapproval is given; or

(ii) such later date as the Inland Revenue may specifyin that notice.

(8) Where the Inland Revenue have refused or withdrawn theirapproval for the purposes of sub-paragraph (1)(b) above, the personwho applied for it or, as the case may be, to whom it was given mayappeal to the Special Commissioners against the Inland Revenue’sdecision.

(9) On an appeal under sub-paragraph (8) above the SpecialCommissioners may—

(a) dismiss the appeal;

(b) remit the decision appealed against to the Inland Revenuewith a direction to make such decision as the SpecialCommissioners think fit; or

(c) in the case of a decision to withdraw an approval, quashthat decision and direct that that decision is to be treatedas never having been made.

(10) Subject to sub-paragraph (12) below, an election under sub-paragraph (1) above shall not apply to any contributions in respectof gains realised before it was made.

(11) Regulations made by the Inland Revenue may makeprovision with respect to the making of elections for the purposes ofthis paragraph and the giving of approvals for the purposes of sub-paragraph (1)(b) above; and any such regulations may, inparticular—

(a) prescribe the matters that must be contained in such anelection;



Part IV(b) provide for the manner in which such an election is to be

capable of being made and of being confined to particularliabilities or the part of particular liabilities; and

(c) provide for the making of applications for such approvalsand for the manner in which those applications are to bedealt with.

(12) Where—

(a) an election is made under this paragraph before the end ofthe period of three months beginning with the date of thepassing of the Child Support, Pensions and Social SecurityAct 2000, and

(b) that election is expressed to relate to liabilities forcontributions arising on or after 19th May 2000 and beforethe making of the election,

this paragraph shall have effect in relation to those liabilities as ifsub-paragraph (2) above provided for them to be deemed to havefallen on the earner (instead of on the secondary contributor); andthe secondary contributor shall accordingly be entitled toreimbursement from the earner for any payment made by thatcontributor in or towards the discharge of any of those liabilities.

(13) In this paragraph references to contributions on shareoption gains by the earner are references to any secondary Class 1contributions payable in respect of a gain that is treated asremuneration derived from the earner’s employment by virtue ofsection 4(4)(a) above.

(14) In this paragraph ‘the Special Commissioners’ means theCommissioners for the special purposes of the Income Tax Acts.”

(3) In section 6(4) of that Act (persons by whom Class 1 contributionsare payable), for the words from “paragraph 3” onwards there shall besubstituted “paragraphs 3 to 3B of Schedule 1 to this Act.”

(4) In paragraph 8(1) of Schedule 1 to that Act (general regulations),after paragraph (c) there shall be inserted—

“(ca) for requiring a secondary contributor to notify a personto whom any of his liabilities are transferred by an electionunder paragraph 3B above of—

(i) any transferred liability that arises;

(ii) the amount of any transferred liability thatarises; and

(iii) the contents of any notice of withdrawal by theInland Revenue of any approval that relates to thatelection;”.

(5) In Article 7(1) of the Social Security Contributions (Transfer ofS.I. 1999/671.Functions, etc.) (Northern Ireland) Order 1999 (decisions to be taken byofficers of the Inland Revenue), after sub-paragraph (i) there shall beinserted—

“(ia) to decide whether to give or withdraw an approval for thepurposes of paragraph 3B(1)(b) of Schedule 1 to theContributions and Benefits Act;”.



Part IV(6) InArticle 9 of thatOrder (regulations about varying or superseding

decisions), at the beginning of paragraph (1) there shall be inserted“Subject to paragraph (2A) below,”, and after paragraph (2) there shallbe inserted—

“(2A) The decisions in relation to which provision may be madeby regulations under this Article shall not include decisions fallingwithin Article 7(1)(ia) of this Order.”

(7) In Article 11(4) of that Order (appeals to be heard by GeneralCommissioners), after “Subject to” there shall be inserted “paragraph3B(8) of Schedule 1 to the Contributions and BenefitsAct (which providesfor appeals under that paragraph to be heard by the SpecialCommissioners), to”.

Part V

Miscellaneous and supplemental

Miscellaneous

82.—(1) Part III of the Family Law Reform Act 1969 (tests for Tests fordeterminingdetermining parentage) shall be amended in accordance with subsectionsparentage.(2) to (4).1969 c. 46.

(2) In section 20 (power of the court to require tests)—

(a) for subsections (1A) and (1B) (nomination of the person bywhom tests are to be carried out) there shall be substituted—

“(1A) Tests required by a direction under this section may onlybe carried out by a body which has been accredited for the purposesof this section by—

(a) the Lord Chancellor, or

(b) a body appointed by him for the purpose.”;

(b) in subsection (2)—(i) for “person responsible for” there shall be substituted

“individual”, and(ii) after “this section” there shall be inserted “(“the

tester”)”;

(c) in subsection (4), for “the person who made the report” thereshall be substituted “the tester”; and

(d) in subsection (5)—(i) for “the person responsible for carrying out the tests

taken for the purpose of giving effect to the direction, or any”there shall be substituted “the tester, or any other”,

(ii) for “that person” there shall be substituted “the testeror that other person”, and

(iii) after “and where” there shall be inserted “the testeror”.

(3) In section 21 (consents, etc, required for the taking of bloodsamples), in subsection (3), for the words “if the person who has the careand control of him consents” there shall be substituted—

“(a) if the person who has the care and control of him consents; or

(b) where that person does not consent, if the court considers that itwould be in his best interests for the sample to be taken.”



Part V(4) In section 22(1) (power of Lord Chancellor to make further

provision relating to tests for determining parentage)—

(a) in paragraph (a) (power to provide that bodily samples are notto be taken except by such medical practitioners as may beappointed by the Lord Chancellor), for the words from “suchmedical practitioners” to the end there shall be substituted“registered medical practitioners or members of suchprofessional bodies as may be prescribed by the regulations;”,and

(b) for paragraph (e) (power to provide that scientific tests are notto be carried out except by persons appointed by the LordChancellor) there shall be substituted—

“(e) prescribe conditions which a body must meet in order tobe eligible for accreditation for the purposes of section 20of this Act;”.

(5) The amendments made by this section shall not have effect inrelation to any proceedings pending at the commencement of this section.

83.—(1) Part III of the Family Law Act 1986 (declarations of status)Declarations ofstatus. shall be amended as follows.1986 c. 55.

(2) After section 55 there shall be inserted—

“Declarations of 55A.—(1) Subject to the following provisions of thisparentage. section, any person may apply to the High Court, a

county court or a magistrates’ court for a declaration asto whether or not a person named in the application is orwas the parent of another person so named.

(2) A court shall have jurisdiction to entertain anapplication under subsection (1) above if, and only if,either of the persons named in it for the purposes of thatsubsection—

(a) is domiciled in England and Wales on the date ofthe application, or

(b) has been habitually resident in England andWales throughout the period of one year endingwith that date, or

(c) died before that date and either—(i) was at death domiciled in England and

Wales, or(ii) had been habitually resident in

England and Wales throughout the period ofone year ending with the date of death.

(3) Except in a case falling within subsection (4) below,the court shall refuse to hear an application undersubsection (1) above unless it considers that the applicanthas a sufficient personal interest in the determination ofthe application (but this is subject to section 27 of theChild Support Act 1991).1991 c. 48.

(4) The excepted cases are where the declarationsought is as to whether or not—

(a) the applicant is the parent of a named person;



Part V(b) a named person is the parent of the applicant; or

(c) a named person is the other parent of a namedchild of the applicant.

(5) Where an application under subsection (1) above ismade and one of the persons named in it for the purposesof that subsection is a child, the court may refuse to hearthe application if it considers that the determination ofthe application would not be in the best interests of thechild.

(6) Where a court refuses to hear an application undersubsection (1) above it may order that the applicant maynot apply again for the same declaration without leave ofthe court.

(7) Where a declaration is made by a court on anapplication under subsection (1) above, the prescribedofficer of the court shall notify the Registrar General, insuch a manner and within such period as may beprescribed, of the making of that declaration.”

(3) Section 58(5)(b) (prohibition of declarations of illegitimacy) shallbe omitted.

(4) After section 60(4) there shall be inserted—

“(5) An appeal shall lie to the High Court against—

(a) the making by a magistrates’ court of a declaration undersection 55A above,

(b) any refusal by a magistrates’ court to make such adeclaration, or

(c) any order under subsection (6) of that section made on sucha refusal.”

(5) Schedule 8 (which makes amendments consequential on subsection(1)) shall have effect.

(6) Nothing in this Act shall affect any proceedings pursuant to anapplication under—

(a) section 56(1)(a) of the Family Law Act 1986, or 1986 c. 55.

1991 c. 48.(b) section 27 of the Child Support Act 1991,

which are pending immediately before the commencement of this section.

Supplemental

84. There shall be paid out of money provided by Parliament— Expenses.

(a) any expenditure incurred by the Secretary of State for or inconnection with the carrying out of his functions under thisAct; and

(b) any increase attributable to this Act in the sums which arepayable out of money so provided under any other Act.

85.—(1) The enactments mentioned in Schedule 9 (which include some Repeals.spent provisions) are hereby repealed to the extent specified in the thirdcolumn of that Schedule.



Part V(2) The repeals specified in that Schedule have effect subject to the

commencement provisions and savings contained, or referred to, in thenotes set out in that Schedule.

86.—(1) This section applies to the following provisions of this Act—Commencementand transitional (a) Part I (other than section 24);provisions.

(b) Part II (other than sections 38 and 39 andparagraphs 4 to 6, 8(1),(3) and (4) and 13 of Schedule 5);

(c) Part III;

(d) sections 82 and 83 and Schedule 8;

(e) Parts I to VII and IX of Schedule 9.

(2) The provisions of this Act to which this section applies shall comeinto force on such day as may be appointed by order made by statutoryinstrument; and different days may be appointed under this section fordifferent purposes.

(3) The power to make an order under subsection (2) shall beexercisable—

(a) except in a case falling within paragraph (b), by the Secretary ofState; and

(b) in the case of an order bringing into force any of the provisionsof sections 82 and 83, Schedule 8 or Part IX of Schedule 9, bythe Lord Chancellor.

(4) In the case of Part I (other than section 24) and of sections 62 to66, the power under subsection (2) to appoint different days for differentpurposes includes power to appoint different days for different areas.

(5) The Secretary of State may by regulations make such transitionalprovision as he considers necessary or expedient in connection with thebringing into force of any of the following provisions of this Act—

(a) sections 43 to 46 and section (1) of Part III of Schedule 9;

(b) sections 68 to 70 and Schedule 7 and Part VII of Schedule 9.

(6) Regulations under subsection (5) shall be made by statutoryinstrument subject to annulment in pursuance of a resolution of eitherHouse of Parliament.

(7) Section 174(2) to (4) of the Pensions Act 1995 (supplementary1995 c. 26.provision in relation to powers to make subordinate legislation under thatAct) shall apply in relation to the power to make regulations undersubsection (5) as it applies to any power to make regulations under thatAct.

(8) In this section “subordinate legislation” has the same meaning asin the Interpretation Act 1978.1978 c. 30.

87.—(1) This Act may be cited as the Child Support, Pensions andShort title andextent. Social Security Act 2000.

(2) The following provisions of this Act extend to Northern Ireland—

(a) so much of section 46 as amends section 21(3) of the Pensions1995 c. 26.Act 1995;

(b) sections 57 to 61 (except section 60(5));



Part V(c) section 73;

(d) sections 78 to 81;

(e) in Schedule 3, paragraphs 8 and 9, and in paragraph 11, sub-paragraph (2) (and sub-paragraph (1) so far as it relates to thatsub-paragraph);

(f) paragraph 6 of Schedule 5; and

(g) this Part, except—(i) sections 82 and 83 and Schedule 8; and(ii) so much of this Part as gives effect to any repeal other

than the repeals mentioned in subsection (3).

(3) The repeals mentioned in subsection (2)(g) (which extend toNorthern Ireland) are—

(a) the repeals, in Part I of Schedule 9, that relate to the Tax Credits 1999 c. 10.Act 1999;

(b) the repeals, in sections (1), (6) and (11) of Part III of thatSchedule, that relate to—

(i) section 21(3) of the Pensions Act 1995; 1995 c. 26.

S.I. 1995/3213(ii) paragraph 49(a)(ii) of Schedule 3 to the Pensions(N.I. 22).(Northern Ireland) Order 1995; and

(iii) section 52(5) of the Pension Schemes (Northern 1993 c. 49.Ireland) Act 1993;

(c) the repeals in Part IV of that Schedule (except so far as relatingto the Courts and Legal Services Act 1990); and 1990 c. 41.

(d) the repeals in section (2) of Part VIII of that Schedule.

(4) Subject to that, this Act does not extend to Northern Ireland.

02-08-00 09:57:05ch1900s01a ACT Unit: pag2 RA Proof, 24.07.2000


S C H E D U L E S

SCHEDULE 1Section 1.

Substituted Part I of Schedule 1 to the Child Support Act 1991

“PART I

Calculation of weekly amount of child support maintenance

General rule

1.—(1) The weekly rate of child support maintenance is the basic rate unless areduced rate, a flat rate or the nil rate applies.

(2) Unless the nil rate applies, the amount payable weekly to a person withcare is—

(a) the applicable rate, if paragraph 6 does not apply; or

(b) if paragraph 6 does apply, that rate as apportioned between the personswith care in accordance with paragraph 6,

as adjusted, in either case, by applying the rules about shared care in paragraph7 or 8.

Basic rate

2.—(1) The basic rate is the following percentage of the non-resident parent’snet weekly income—

15% where he has one qualifying child;

20% where he has two qualifying children;

25% where he has three or more qualifying children.

(2) If the non-resident parent also has one or more relevant other children, theappropriate percentage referred to in sub-paragraph (1) is to be applied insteadto his net weekly income less—

15% where he has one relevant other child;

20% where he has two relevant other children;

25% where he has three or more relevant other children.

Reduced rate

3.—(1) A reduced rate is payable if—

(a) neither a flat rate nor the nil rate applies; and

(b) the non-resident parent’s net weekly income is less than £200 but morethan £100.

(2) The reduced rate payable shall be prescribed in, or determined inaccordance with, regulations.

(3) The regulations may not prescribe, or result in, a rate of less than £5.

Flat rate

4.—(1) Except in a case falling within sub-paragraph (2), a flat rate of £5 ispayable if the nil rate does not apply and—

(a) the non-resident parent’s net weekly income is £100 or less; or

(b) he receives any benefit, pension or allowance prescribed for thepurposes of this paragraph of this sub-paragraph; or

(c) he or his partner (if any) receives any benefit prescribed for the purposesof this paragraph of this sub-paragraph.



Sch. 1(2) A flat rate of a prescribed amount is payable if the nil rate does not

apply and—

(a) the non-resident parent has a partner who is also a non-resident parent;

(b) the partner is a person with respect to whom a maintenance calculationis in force; and

(c) the non-resident parent or his partner receives any benefit prescribedunder sub-paragraph (1)(c).

(3) The benefits, pensions and allowances which may be prescribed for thepurposes of sub-paragraph (1)(b) include ones paid to the non-resident parentunder the law of a place outside the United Kingdom.

Nil rate

5. The rate payable is nil if the non-resident parent—

(a) is of a prescribed description; or

(b) has a net weekly income of below £5.

Apportionment

6.—(1) If the non-resident parent has more than one qualifying child and inrelation to them there is more than one person with care, the amount of childsupport maintenance payable is (subject to paragraph 7 or 8) to be determinedby apportioning the rate between the persons with care.

(2) The rate of maintenance liability is to be divided by the number ofqualifying children, and shared among the persons with care according to thenumber of qualifying children in relation to whom each is a person with care.

Shared care—basic and reduced rate

7.—(1) This paragraph applies only if the rate of child support maintenancepayable is the basic rate or a reduced rate.

(2) If the care of a qualifying child is shared between the non-resident parentand the person with care, so that the non-resident parent from time to time hascare of the child overnight, the amount of child support maintenance which hewould otherwise have been liable to pay the person with care, as calculated inaccordance with the preceding paragraphs of this Part of this Schedule, is to bedecreased in accordance with this paragraph.

(3) First, there is to be a decrease according to the number of such nightswhich the Secretary of State determines there to have been, or expects there tobe, or both during a prescribed twelve-month period.

(4) The amount of that decrease for one child is set out in the followingTable—

Number of nights Fraction to subtract

52 to 103 One-seventh104 to 155 Two-sevenths156 to 174 Three-sevenths

175 or more One-half

(5) If the person with care is caring for more than one qualifying child of thenon-resident parent, the applicable decrease is the sum of the appropriatefractions in the Table divided by the number of such qualifying children.

(6) If the applicable fraction is one-half in relation to any qualifying child inthe care of the person with care, the total amount payable to the person with careis then to be further decreased by £7 for each such child.



Sch. 1(7) If the application of the preceding provisions of this paragraph would

decrease the weekly amount of child support maintenance (or the aggregate ofall such amounts) payable by the non-resident parent to the person with care (orall of them) to less than £5, he is instead liable to pay child support maintenanceat the rate of £5 a week, apportioned (if appropriate) in accordance withparagraph 6.

Shared care—flat rate

8.—(1) This paragraph applies only if—

(a) the rate of child support maintenance payable is a flat rate; and

(b) that rate applies because the non-resident parent falls within paragraph4(1)(b) or (c) or 4(2).

(2) If the care of a qualifying child is shared as mentioned in paragraph 7(2)for at least 52 nights during a prescribed 12-month period, the amount of childsupport maintenance payable by the non-resident parent to the person with careof that child is nil.

Regulations about shared care

9. The Secretary of State may by regulations provide—

(a) for which nights are to count for the purposes of shared care underparagraphs 7 and 8, or for how it is to be determined whether a nightcounts;

(b) for what counts, or does not count, as “care” for those purposes; and

(c) for paragraph 7(3) or 8(2) to have effect, in prescribed circumstances, asif the period mentioned there were other than 12 months, and in suchcircumstances for the Table in paragraph 7(4) (or that Table asmodified pursuant to regulations made under paragraph 10A(2)(a)), orthe period mentioned in paragraph 8(2), to have effect with prescribedadjustments.

Net weekly income

10.—(1) For the purposes of this Schedule, net weekly income is to bedetermined in such manner as is provided for in regulations.

(2) The regulations may, in particular, provide for the Secretary of State toestimate any income or make an assumption as to any fact where, in his view,the information at his disposal is unreliable, insufficient, or relates to an atypicalperiod in the life of the non-resident parent.

(3) Any amount of net weekly income (calculated as above) over £2,000 is tobe ignored for the purposes of this Schedule.

Regulations about rates, figures, etc.

10A.—(1) The Secretary of State may by regulations provide that—

(a) paragraph 2 is to have effect as if different percentages were substitutedfor those set out there;

(b) paragraph 3(1) or (3), 4(1), 5, 7(7) or 10(3) is to have effect as if differentamounts were substituted for those set out there.

(2) The Secretary of State may by regulations provide that—

(a) the Table in paragraph 7(4) is to have effect as if different numbers ofnights were set out in the first column and different fractions weresubstituted for those set out in the second column;

(b) paragraph 7(6) is to have effect as if a different amount were substitutedfor that mentioned there, or as if the amount were an aggregate amountand not an amount for each qualifying child, or both.



Sch. 1Regulations about income

10B. The Secretary of State may by regulations provide that, in suchcircumstances and to such extent as may be prescribed—

(a) where the Secretary of State is satisfied that a person has intentionallydeprived himself of a source of income with a view to reducing theamount of his net weekly income, his net weekly income shall be takento include income from that source of an amount estimated by theSecretary of State;

(b) a person is to be treated as possessing income which he does not possess;

(c) income which a person does possess is to be disregarded.

References to various terms

10C.—(1) References in this Part of this Schedule to “qualifying children” areto those qualifying children with respect to whom the maintenance calculationfalls to be made.

(2) References in this Part of this Schedule to “relevant other children” areto—

(a) children other than qualifying children in respect of whom the non-resident parent or his partner receives child benefit under Part IX of theSocial Security Contributions and Benefits Act 1992; and 1992 c. 4.

(b) such other description of children as may be prescribed.

(3) In this Part of this Schedule, a person “receives” a benefit, pension, orallowance for any week if it is paid or due to be paid to him in respect of thatweek.

(4) In this Part of this Schedule, a person’s “partner” is—

(a) if they are a couple, the other member of that couple;

(b) if the person is a husband or wife by virtue of a marriage entered intounder a law which permits polygamy, another party to the marriagewho is of the opposite sex and is a member of the same household.

(5) In sub-paragraph (4)(a), “couple” means a man and a woman who are—

(a) married to each other and are members of the same household; or

(b) not married to each other but are living together as husband and wife.”.

SCHEDULE 2 Section 6.

Substituted Schedules 4A and 4B to the 1991 Act

Part I

Substituted Schedule 4A

“SCHEDULE 4A

Applications for a variation

Interpretation

1. In this Schedule, “regulations” means regulations made by theSecretary of State.



Sch. 2Applications for a variation

2. Regulations may make provision—

(a) as to the procedure to be followed in considering an applicationfor a variation;

(b) as to the procedure to be followed when an application for avariation is referred to an appeal tribunal under section28D(1)(b).

Completion of preliminary consideration

3. Regulations may provide for determining when the preliminaryconsideration of an application for a variation is to be taken to have beencompleted.

Information

4. If any information which is required (by regulations under this Act) tobe furnished to the Secretary of State in connection with an application fora variation has not been furnished within such period as may be prescribed,the Secretary of State may nevertheless proceed to consider the application.

Joint consideration of applications for a variation and appeals

5.—(1) Regulations may provide for two or more applications for avariation with respect to the same application for a maintenancecalculation to be considered together.

(2) In sub-paragraph (1), the reference to an application for amaintenance calculation includes an application treated as having beenmade under section 6.

(3) An appeal tribunal considering an application for a variation undersection 28D(1)(b) may consider it at the same time as an appeal undersection 20 in connection with an interim maintenance decision, if itconsiders that to be appropriate.”

Part II

Substituted Schedule 4B

“SCHEDULE 4B

Applications for a variation: The Cases and Controls

Part I

The Cases

General

1.—(1) The cases in which a variation may be agreed are those set out inthis Part of this Schedule or in regulations made under this Part.

(2) In this Schedule “applicant” means the person whose application fora variation is being considered.

Special expenses

2.—(1) A variation applied for by a non-resident parent may be agreedwith respect to his special expenses.

(2) In this paragraph “special expenses” means the whole, or anyamount above a prescribed amount, or any prescribed part, of expenseswhich fall within a prescribed description of expenses.



Sch. 2(3) In prescribing descriptions of expenses for the purposes of this

paragraph, the Secretary of State may, in particular, make provision withrespect to—

(a) costs incurred by a non-resident parent in maintaining contactwith the child, or with any of the children, with respect to whomthe application for a maintenance calculation has been made (ortreated as made);

(b) costs attributable to a long-term illness or disability of a relevantother child (within the meaning of paragraph 10C(2) ofSchedule 1);

(c) debts of a prescribed description incurred, before the non-residentparent became a non-resident parent in relation to a child withrespect to whom the maintenance calculation has been appliedfor (or treated as having been applied for)—

(i) for the joint benefit of both parents;

(ii) for the benefit of any such child; or

(iii) for the benefit of any other child falling within aprescribed category;

(d) boarding school fees for a child in relation to whom theapplication for a maintenance calculation has been made (ortreated as made);

(e) the cost to the non-resident parent of making payments in relationto a mortgage on the home he and the person with care shared, ifhe no longer has an interest in it, and she and a child in relationto whom the application for a maintenance calculation has beenmade (or treated as made) still live there.

(4) For the purposes of sub-paragraph (3)(b)—

(a) “disability” and “illness” have such meaning as may beprescribed; and

(b) the question whether an illness or disability is long-term shall bedetermined in accordance with regulations made by the Secretaryof State.

(5) For the purposes of sub-paragraph (3)(d), the Secretary of State mayprescribe—

(a) the meaning of “boarding school fees”; and

(b) components of such fees (whether or not itemised as such) whichare, or are not, to be taken into account,

and may provide for estimating any such component.

Property or capital transfers

3.—(1) A variation may be agreed in the circumstances set out in sub-paragraph (2) if before 5th April 1993—

(a) a court order of a prescribed kind was in force with respect to thenon-resident parent and either the person with care with respectto the application for the maintenance calculation or the child, orany of the children, with respect to whom that application wasmade; or

(b) an agreement of a prescribed kind between the non-residentparent and any of those persons was in force.

(2) The circumstances are that in consequence of one or more transfersof property of a prescribed kind and exceeding (singly or in aggregate) aprescribed minimum value—



Sch. 2(a) the amount payable by the non-resident parent by way of

maintenance was less than would have been the case had thattransfer or those transfers not been made; or

(b) no amount was payable by the non-resident parent by way ofmaintenance.

(3) For the purposes of sub-paragraph (2), “maintenance” meansperiodical payments of maintenance made (otherwise than under this Act)with respect to the child, or any of the children, with respect to whom theapplication for a maintenance calculation has been made.

Additional cases

4.—(1) The Secretary of State may by regulations prescribe other casesin which a variation may be agreed.

(2) Regulations under this paragraph may, for example, make provisionwith respect to cases where—

(a) the non-resident parent has assets which exceed a prescribedvalue;

(b) a person’s lifestyle is inconsistent with his income for the purposesof a calculation made under Part I of Schedule 1;

(c) a person has income which is not taken into account in such acalculation;

(d) a person has unreasonably reduced the income which is taken intoaccount in such a calculation.

Part II

Regulatory Controls

5.—(1) The Secretary of State may by regulations make provision withrespect to the variations from the usual rules for calculating maintenancewhich may be allowed when a variation is agreed.

(2) No variations may be made other than those which are permitted bythe regulations.

(3) Regulations under this paragraph may, in particular, makeprovision for a variation to result in—

(a) a person’s being treated as having more, or less, income thanwould be taken into account without the variation in acalculation under Part I of Schedule 1;

(b) a person’s being treated as liable to pay a higher, or a lower,amount of child support maintenance than would result withoutthe variation from a calculation under that Part.

(4) Regulations may provide for the amount of any special expenses tobe taken into account in a case falling within paragraph 2, for the purposesof a variation, not to exceed such amount as may be prescribed or as maybe determined in accordance with the regulations.

(5) Any regulations under this paragraph may in particular makedifferent provision with respect to different levels of income.

6. The Secretary of State may by regulations provide for the application,in connection with child support maintenance payable following avariation, of paragraph 7(2) to (7) of Schedule 1 (subject to any prescribedmodifications).”



Section 26.SCHEDULE 3

Amendment of enactments relating to child support

The Army Act 1955 (3 & 4 Eliz. 2 c.18)

1.—(1) Section 150A of the Army Act 1955 (enforcement of maintenanceassessment by deductions from pay) shall be amended as follows.

(2) In subsections (1), (2)(a), (3)(a) (twice) and (4), for “maintenanceassessment” there shall be substituted “maintenance calculation”.

(3) In subsection (3) (twice), for “the assessment” there shall be substituted“the calculation”.

The Air Force Act 1955 (3 & 4 Eliz. 2 c.19)

2.—(1) Section 150A of the Air Force Act 1955 (enforcement of maintenanceassessment by deductions from pay) shall be amended as follows.

(2) In subsections (1), (2)(a), (3)(a) (twice) and (4), for “maintenanceassessment” there shall be substituted “maintenance calculation”.

(3) In subsection (3) (twice), for “the assessment” there shall be substituted“the calculation”.

The Matrimonial Causes Act 1973 (c.18)

3.—(1) The Matrimonial Causes Act 1973 shall be amended as follows.

(2) In section 29 (duration of continuing financial provision orders in favourof children, and age limit on making certain orders in their favour)—

(a) in subsections (5)(a), (7) (three times) and (8)(a), for “maintenanceassessment” there shall be substituted “maintenance calculation”;

(b) in subsections (5)(a) and (b)(ii) and (6)(b), for “current assessment”there shall be substituted “current calculation”;

(c) in subsection (6)(b), for “maintenance assessments” there shall besubstituted “maintenance calculations”; and

(d) in subsection (6)(b), for “those assessments” there shall be substituted“those calculations”.

(3) In section 31 (variation, discharge, etc, of certain orders for financialrelief)—

(a) in subsections (11)(c) and (12)(a) and (c), for “maintenance assessment”there shall be substituted “maintenance calculation”; and

(b) in subsection (11) (twice), for “the assessment” there shall be substituted“the calculation”.

(4) In section 52 (interpretation), in subsection (1), for “maintenanceassessment” there shall be substituted “maintenance calculation”.

The Domestic Proceedings and Magistrates Courts Act 1978 (c.22)

4.—(1) The Domestic Proceedings and Magistrates Courts Act 1978 shall beamended as follows.

(2) In section 5 (age limit on making orders for financial provision for childrenand duration of such orders)—

(a) in subsections (5)(a), (7) (three times) and (8)(a), for “maintenanceassessment” there shall be substituted “maintenance calculation”;



Sch. 3(b) in subsections (5)(a) and (b)(ii) and (6)(b), for “current assessment”

there shall be substituted “current calculation”; and

(c) in subsection (6)(b), for “those assessments” there shall be substituted“those calculations”.

(3) In section 20 (variation, revival and revocation of orders for periodicalpayments)—

(a) in subsections (9A)(c) and (9B)(a) and (c), for “maintenanceassessment” there shall be substituted “maintenance calculation”; and

(b) in subsection (9A) (three times), for “the assessment” there shall besubstituted “the calculation”.


The Family Law (Scotland) Act 1985 (c.37)

5.—(1) The Family Law (Scotland) Act 1985 shall be amended as follows.

(2) In section 5 (variation and recall of decrees of aliment), in subsection (1A),for “maintenance assessment” there shall be substituted “maintenancecalculation”.

(3) In section 7 (agreements about aliment), in subsection (2A), for“maintenance assessment” there shall be substituted “maintenance calculation”.

(4) In section 13 (orders for periodical allowance), in subsection (4A), for“maintenance assessment” there shall be substituted “maintenance calculation”.

(5) In section 16 (agreements about financial provision), in subsection (3)(d),for “maintenance assessment” there shall be substituted “maintenancecalculation”.


The Insolvency Act 1986 (c.45)

6. In section 281 of the Insolvency Act 1986 (effect of discharge on a bankrupt),in subsection (5)(b), for “maintenance assessment” there shall be substituted“maintenance calculation”.

The Debtors (Scotland) Act 1987 (c.18)

7.—(1) The Debtors (Scotland) Act 1987 shall be amended as follows.

(2) In section 72 (effect of sequestration on diligence against earnings), insubsection (4A), for “maintenance assessment” there shall be substituted“maintenance calculation”.

(3) In section 106 (interpretation), in the definition of “maintenance order”,in paragraph (j), for “maintenance assessment” there shall be substituted“maintenance calculation”.

The Income and Corporation Taxes Act 1988 (c.1)

8.—(1) The Income and Corporation Taxes Act 1988 shall be amended asfollows.

(2) In section 347B (qualifying maintenance payments)—

(a) in subsections (8) and (9)(a) and (c), for “maintenance assessment” thereshall be substituted “maintenance calculation”;

(b) in subsection (9)(b) and (c), for “the assessment” there shall besubstituted “the calculation”; and



Sch. 3(c) for subsection (11) there shall be substituted—

“(11) In this section “maintenance calculation” means a maintenancecalculation made under the Child Support Act 1991 or a maintenanceassessment made under the Child Support (Northern Ireland) Order 1991.”

(3) In section 617 (social security benefits and contributions), in subsection(2)(ae), for “section 24 of the Child Support Act 1995 or under anycorresponding enactment” there shall be substituted “any enactmentcorresponding to section 24 of the Child Support Act 1995”.

The Finance Act 1988 (c.39)

9. In the Finance Act 1988, in each of subsection (5A) of section 36 (annualpayments) and subsection (8A) of section 38 (maintenance payments underexisting obligations: 1989-90 onwards), for “maintenance assessment made”there shall be substituted “maintenance calculation or maintenance assessmentmade respectively”.

The Children Act 1989 (c.41)

10.—(1) Schedule 1 to the Children Act 1989 (financial provision for children)shall be amended as follows.

(2) In paragraph 3—

(a) in sub-paragraph (5)(a), (7) (three times) and (8)(a), for “maintenanceassessment” there shall be substituted “maintenance calculation”;

(b) in sub-paragraph (5)(a) and (b)(ii) and (6)(b), for “current assessment”there shall be substituted “current calculation”;

(c) in sub-paragraph (6)(b), for “maintenance assessments” there shall besubstituted “maintenance calculations”; and

(d) in sub-paragraph (6)(b), for “those assessments” there shall besubstituted “those calculations”.

(3) In paragraph 6—

(a) in sub-paragraph (9) (three times), for “the assessment” there shall besubstituted “the calculation”; and

(b) in sub-paragraph (9)(c), for “maintenance assessment” there shall besubstituted “maintenance calculation”.

(4) In paragraph 16(3), for “maintenance assessment” there shall besubstituted “maintenance calculation”.

The Child Support Act 1991 (c.48)

11.—(1) The 1991 Act shall be amended as follows.

(2) For “absent parent” (or any variant of that expression), wherever itoccurs, there shall be substituted “non-resident parent” (or the correspondingvariant) preceded, where appropriate, by “a” instead of “an”.

(3) In section 4 (child support maintenance)—

(a) in subsection (4)(a), after “be” there shall be inserted “identified or”;and

(b) in subsection (9), after “an application” there shall be inserted “treatedas made”.

(4) In section 7 (right of a child in Scotland to apply for assessment)—

(a) in subsection (1), for paragraph (b) there shall be substituted—

“(b) no parent has been treated under section 6(3) as having appliedfor a maintenance calculation with respect to the child.”; and



Sch. 3(b) in subsection (10)—

(i) after “qualifying child if” there shall be inserted “(a)”;

(ii) after “maintenance order” there shall be inserted “madebefore a prescribed date”; and

(iii) at the end there shall be inserted “or(b) a maintenance order made on or after the date

prescribed for the purposes of paragraph (a) is inforce in respect of them, but has been so for less thanthe period of one year beginning with the date onwhich it was made.”.

(5) In section 8 (role of the courts with respect to maintenance for children)—

(a) in subsection (1), after “duly made” there shall be inserted “(or treatedas made)”;

(b) in subsection (3), at the beginning insert “Except as provided insubsection (3A),”;

(c) for subsection (3A) there shall be substituted—

“(3A) Unless a maintenance calculation has been made with respect tothe child concerned, subsection (3) does not prevent a court from varyinga maintenance order in relation to that child and the non-resident parentconcerned—

(a) if the maintenance order was made on or after the date prescribedfor the purposes of section 4(10)(a) or 7(10)(a); or

(b) where the order was made before then, in any case in which section4(10) or 7(10) prevents the making of an application for amaintenance calculation with respect to or by that child.”; and

(d) in subsection (6), for paragraph (b) there shall be substituted—

“(b) the non-resident parent’s net weekly income exceeds the figurereferred to in paragraph 10(3) of Schedule 1 (as it has effect fromtime to time pursuant to regulations made under paragraph10A(1)(b)); and”.

(6) In section 9 (agreements about maintenance), in subsection (6), forparagraphs (a) and (b) there shall be substituted—

“(a) no parent has been treated under section 6(3) as having appliedfor a maintenance calculation with respect to the child; or

(b) a parent has been so treated but no maintenance calculation hasbeen made,”.

(7) In section 14 (information required by Secretary of State), in subsection(1), after “any application” there shall be inserted “made or treated as made”.

(8) In section 26 (disputes about parentage), in subsection (1), after “made”there shall be inserted “or treated as made”.

(9) In section 27A (recovery of fees for scientific tests)—

(a) in subsection (1)(a), after “made” there shall be inserted “or treated asmade”; and

(b) in subsection (1)(b), after “made” there shall be inserted “or, as the casemay be, treated as made”.

(10) In section 28 (power of the Secretary of State to bring or defend actionsof declarator), in subsection (1)(a)—

(a) after “made”, where it first occurs, there shall be inserted “or treated asmade”; and

(b) for “or assessment was made” there shall be substituted “was made ortreated as made or the calculation was made”.



Sch. 3(11) In section 28ZA (decisions involving issues that arise on appeal in other

cases), in subsection (1)—

(a) in paragraph (a), for the words “in relation to a maintenanceassessment” there shall be substituted “or with respect to a reducedbenefit decision under section 46”; and

(b) for paragraph (b) there shall be substituted—

“(b) an appeal is pending against a decision given in relation to adifferent matter by a Child Support Commissioner or a court.”

(12) In section 28ZB (appeals involving issues that arise on appeal in othercases)—

(a) in subsection (1), for paragraph (a) there shall be substituted—

“(a) an appeal (“appeal A”) in relation to a decision or the impositionof a requirement falling within section 20(1) is made to an appealtribunal, or from an appeal tribunal to a Child SupportCommissioner;”; and

(b) in subsection (4), for the words “or assessment” there shall besubstituted “or the imposition of the requirement”.

(13) In section 28ZC (restrictions on liability in certain cases of error)—

(a) in subsection (1)(b)(i), at the end there shall be inserted “or one treatedas having been so made, or under section 46 as to the reduction ofbenefit”;

(b) in subsection (1)(b)(ii), for the words from “a decision” to the end thereshall be substituted “any decision (made after the commencement date)referred to in section 16(1A)”;

(c) in subsection (1)(b)(iii), for the words from “a decision” to the end thereshall be substituted “any decision (made after the commencement date)referred to in section 17(1)”;

(d) in subsection (3), after “liability” there shall be inserted “or thereduction of a person’s benefit”; and

(e) in subsection (6), in the definition of “adjudicating authority”, at the endthere shall be inserted “or, in the case of a decision made on a referralunder section 28D(1)(b), an appeal tribunal”.

(14) Sections 28H (departure directions: decisions and appeals) and 28I(transitional provisions relating to departure directions) shall cease to haveeffect.

(15) In section 30 (collection and enforcement of certain forms ofmaintenance), for subsection (2) there shall be substituted—

“(2) The Secretary of State may, except in prescribed cases, arrange forthe collection of any periodical payments, or secured periodical payments,of a prescribed kind which are payable for the benefit of a child even thoughhe is not arranging for the collection of child support maintenance withrespect to that child.”.

(16) In section 32 (regulations about deduction from earnings orders), insubsection (2), after paragraph (b) there shall be inserted—

“(bb) for the amount or amounts which are to be deducted from the liableperson’s earnings not to exceed a prescribed proportion of his earnings(as determined by the employer);”.

(17) In section 33 (liability orders), after subsection (5) there shall beinserted—

“(6) Where regulations have been made under section 29(3)(a)—

(a) the liable person fails to make a payment (for the purposes ofsubsection (1)(a) of this section); and



Sch. 3(b) a payment is not paid (for the purposes of subsection (3)),

unless the payment is made to, or through, the person specified in or byvirtue of those regulations for the case of the liable person in question.”

(18) In section 47 (fees), after subsection (3) there shall be inserted—

“(4) The provisions of this Act with respect to—

(a) the collection of child support maintenance;

(b) the enforcement of any obligation to pay child supportmaintenance,

shall apply equally (with any necessary modifications) to fees payable byvirtue of regulations made under this section.”

(19) In section 51 (supplementary power to make regulations), in subsection(2)—

(a) for paragraph (a)(ii) and (iii) there shall be substituted—

“(ii) the making of decisions under section 11;

(iii) the making of decisions under section 16 or 17;”; and

(b) for paragraph (b) there shall be substituted—

“(b) extending the categories of case to which section 16, 17 or 20applies;”.

(20) In section 54 (interpretation)—

(a) in the definition of “application for a departure direction”, for“departure direction” there shall be substituted “variation”, and after“28A” there shall be inserted “or 28G”;

(b) after the definition of “deduction from earnings order” there shall beinserted—

““default maintenance decision” has the meaning given in section12;”;

(c) in the definition of “interim maintenance assessment”, for the word“assessment” there shall be substituted the word “decision”;

(d) for the definition of “maintenance assessment” there shall besubstituted—

““maintenance calculation” means a calculation of maintenancemade under this Act and, except in prescribed circumstances,includes a default maintenance decision and an interimmaintenance decision;”;

(e) the definitions of “assessable income”, “current assessment”,“departure direction” and “maintenance requirement” shall beomitted; and

(f) after the definition of “qualifying child” there shall be inserted—

““voluntary payment” has the meaning given in section 28J.”.

(21) In section 58 (short title, commencement and extent)—

(a) in subsection (9), after “35” there shall be inserted “, 40”; and

(b) in subsection (10), after “28” there shall be inserted “, 40A”.

(22) In Schedule 1 (maintenance assessments)—

(a) paragraph 13 (which relates to assessments under which the amountpayable is nil) shall cease to have effect;

(b) in paragraph 14 (which provides for consolidated applications andassessments), the existing text shall be sub-paragraph (1) of thatparagraph, and after that sub-paragraph there shall be inserted—



Sch. 3“(2) In sub-paragraph (1), the references (however expressed) to

applications for maintenance calculations include references toapplications treated as made.”; and

(c) in paragraph 16 (which is about the termination of assessments)—

(i) in sub-paragraph (1), paragraphs (d) and (e) shall cease tohave effect,

(ii) sub-paragraphs (2) to (9) shall cease to have effect; and

(iii) in sub-paragraph (10), the words “, or should be cancelled”shall cease to have effect.

The Social Security Administration Act 1992 (c.5)

12. In section 7A of the Social Security Administration Act 1992 (sharing offunctions as regards certain claims and information), in subsection (6)(a)—

(a) after “application” there shall be inserted “(or an application treated ashaving been made)”; and

(b) for “maintenance assessment” there shall be substituted “maintenancecalculation”.


13.—(1) The Child Support Act 1995 shall be amended as follows.

(2) In section 18 (deferral of right to apply for maintenance assessment),subsection (5) (which enables the Secretary of State by order to repeal any of theprovisions of section 18) shall cease to have effect.

(3) Section 24 (which provides for the making of regulations under whichcompensation could be paid for a reduction in child support maintenanceattributable to changes in child support legislation, and which is now spent) shallcease to have effect.

Prisoners’ Earnings Act 1996 (c.33)

14. In section 1 of the Prisoners’ Earnings Act 1996 (power to make deductionsand impose levies), in subsection (4), in paragraph (d) of the definition of “netweekly earnings”, for “maintenance assessment” there shall be substituted“maintenance calculation”.

The Social Security Act 1998 (c.14)

15.—(1) The Social Security Act 1998 shall be amended as follows.

(2) In Schedule 2 (decisions against which no appeal lies), for paragraph 8 andthe heading preceding it there shall be substituted—

“Reduction in accordance with reduced benefit decision

8. A decision to reduce the amount of a person’s benefit in accordancewith a reduced benefit decision (within the meaning of section 46 of theChild Support Act).”.



Section 31. SCHEDULE 4

Additional pension

The Schedule to be inserted after Schedule 4 to the Social Security1992 c. 4.Contributions and Benefits Act 1992 is as follows—

“SCHEDULE 4A

Additional pension

Part I

The amount

1.—(1) The amount referred to in section 45(2)(c) above is to be calculated asfollows—

(a) take for each tax year concerned the amount for the year which is foundunder the following provisions of this Schedule;

(b) add the amounts together;

(c) divide the sum of the amounts by the number of relevant years;

(d) the resulting amount is the amount referred to in section 45(2)(c) above,except that if the resulting amount is a negative one the amount soreferred to is nil.

(2) For the purpose of applying sub-paragraph (1) above in the determinationof the rate of any additional pension by virtue of section 39(1), 39C(1), 48A(4)or 48B(2) above, in a case where the deceased spouse died under pensionable age,the divisor used for the purposes of sub-paragraph (1)(c) above shall bewhichever is the smaller of the alternative numbers referred to below (instead ofthe number of relevant years).

(3) The first alternative number is the number of tax years which begin after5th April 1978 and end before the date when the entitlement to the additionalpension commences.

(4) The second alternative number is the number of tax years in the period—

(a) beginning with the tax year in which the deceased spouse attained theage of 16 or, if later, 1978-79; and

(b) ending immediately before the tax year in which the deceased spousewould have attained pensionable age if he had not died earlier.

(5) For the purpose of applying sub-paragraph (1) above in the determinationof the rate of any additional pension by virtue of section 48BB(5) above, in a casewhere the deceased spouse died under pensionable age, the divisor used for thepurposes of sub-paragraph (1)(c) above shall be whichever is the smaller of thealternative numbers referred to below (instead of the number of relevant years).

(6) The first alternative number is the number of tax years which begin after5th April 1978 and end before the date when the deceased spouse dies.

(7) The second alternative number is the number of tax years in the period—

(a) beginning with the tax year in which the deceased spouse attained theage of 16 or, if later, 1978-79; and

(b) ending immediately before the tax year in which the deceased spousewould have attained pensionable age if he had not died earlier.

(8) In this paragraph ‘relevant year’ has the same meaning as in section 44above.



Sch. 4Part II

Surplus earnings factor

2.—(1) This Part of this Schedule applies if for the tax year concerned there isa surplus in the pensioner’s earnings factor.

(2) The amount for the year is to be found as follows—

(a) calculate the part of the surplus for that year falling into each of thebands specified in the appropriate table below;

(b) multiply the amount of each such part in accordance with the last orderunder section 148 of the Administration Act to come into force beforethe end of the final relevant year;

(c) multiply each amount found under paragraph (b) above by thepercentage specified in the appropriate table in relation to theappropriate band;

(d) add together the amounts calculated under paragraph (c) above.

(3) The appropriate table for persons attaining pensionable age after the endof the first appointed year but before 6th April 2009 is as follows—

Table 1

PercentageAmount of surplus

40 ! 2NBand 1. Not exceeding LET

10 ! N/2Band 2. Exceeding LET but not exceeding3LET - 2QEF

20 ! NBand 3. Exceeding 3LET - 2QEF

(4) The appropriate table for persons attaining pensionable age on or after 6thApril 2009 is as follows—

Table 2


40Band 1. Not exceeding LET

10Band 2. Exceeding LET but not exceeding3LET - 2QEF

20Band 3. Exceeding 3LET - 2QEF

(5) Regulations may provide, in relation to persons attaining pensionable ageafter such date as may be prescribed, that the amount found under this Part ofthis Schedule for the second appointed year or any subsequent tax year is to becalculated using only so much of the surplus in the pensioner’s earnings factorfor that year as falls into Band 1 in the table in sub-paragraph (4) above.

(6) For the purposes of the tables in this paragraph—

(a) the value of N is 0.5 for each tax year by which the tax year in which thepensioner attained pensionable age precedes 2009-10;

(b) ‘LET’ means the low earnings threshold for that year as specified insection 44A above;

(c) ‘QEF’ means the qualifying earnings factor for the tax year concerned.

(7) In the calculation of ‘2QEF’ the amount produced by doubling QEF shallbe rounded to the nearest whole £100 (taking any amount of £50 as nearest tothe previous whole £100).



Sch. 4(8) In this paragraph ‘final relevant year’ has the same meaning as in section

44 above.

Part III

Contracted-out employment etc

Introduction

3.—(1) This Part of this Schedule applies if the following condition is satisfiedin relation to each tax week in the tax year concerned.

(2) The condition is that any earnings paid to or for the benefit of thepensioner in the tax week in respect of employment were in respect ofemployment qualifying him for a pension provided by a salary relatedcontracted-out scheme or by a money purchase contracted-out scheme or by anappropriate personal pension scheme.

(3) If the condition is satisfied in relation to one or more tax weeks in the taxyear concerned, Part II of this Schedule does not apply in relation to the year.

The amount

4. The amount for the year is amount C where—

(a) amount C is equal to amount A minus amount B, and

(b) amounts A and B are calculated as follows.

Amount A

5.—(1) Amount A is to be calculated as follows.

(2) If there is an assumed surplus in the pensioner’s earnings factor for theyear—






Table 3








Sch. 4

Table 4





Amount B (first case)

6.—(1) Amount B is to be calculated in accordance with this paragraph if thepensioner’s employment was entirely employment qualifying him for a pensionprovided by a salary related contracted-out scheme or by a money purchasecontracted-out scheme.


(a) multiply the amount of the assumed surplus in accordance with the lastorder under section 148 of the Administration Act to come into forcebefore the end of the final relevant year;

(b) multiply the amount found under paragraph (a) above by thepercentage specified in sub-paragraph (3) below.

(3) The percentage is—

(a) 20 ! N if the person attained pensionable age after the end of the firstappointed year but before 6th April 2009;

(b) 20 if the person attained pensionable age on or after 6th April 2009.

Amount B (second case)

7.—(1) Amount B is to be calculated in accordance with this paragraph if thepensioner’s employment was entirely employment qualifying him for a pensionprovided by an appropriate personal pension scheme.









Sch. 4

Table 5






Table 6





Interpretation

8.—(1) In this Part of this Schedule ‘salary related contracted-out scheme’,‘money purchase contracted-out scheme’ and ‘appropriate personal pensionscheme’ have the same meanings as in the Pension Schemes Act 1993.

(2) For the purposes of this Part of this Schedule the assumed surplus in thepensioner’s earnings factor for the year is the surplus there would be in thatfactor for the year if section 48A(1) of the Pension Schemes Act 1993 (no primaryClass 1 contributions deemed to be paid) did not apply in relation to any tax weekfalling in the year.

(3) Section 44A above shall be ignored in applying section 44(6) above for thepurpose of calculating amount B.

(4) For the purposes of this Part of this Schedule—

(a) the value of N is 0.5 for each tax year by which the tax year in which thepensioner attained pensionable age precedes 2009-10;

(b) ‘LET’ means the low earnings threshold for that year as specified insection 44A above;

(c) ‘QEF’ is the qualifying earnings factor for the tax year concerned.

(5) In the calculation of ‘2QEF’ the amount produced by doubling QEF shallbe rounded to the nearest whole £100 (taking any amount of £50 as nearest tothe previous whole £100).

(6) In this Part of this Schedule ‘final relevant year’ has the same meaning asin section 44 above.



Sch. 4

Part IV

Other cases

9. The Secretary of State may make regulations containing provisions forfinding the amount for a tax year in—

(a) cases where the circumstances relating to the pensioner change in thecourse of the year;

(b) such other cases as the Secretary of State thinks fit.”


Pensions: miscellaneous amendments and alternative to anti-frankingrules

Part I

Miscellaneous amendments

Guaranteed minimum for widows and widowers

1.—(1) In section 17 of the 1993 Act (guaranteed minimum for widow orwidower), after subsection (4) there shall be inserted—

“(4A) The scheme must provide for the widow or widower’s pension tobe payable to the widow or widower—

(a) for any period for which a Category B retirement pension ispayable to the widow or widower by virtue of the earner’scontributions or would be so payable but for section 43(1) of theSocial Security Contributions and Benefits Act 1992 (persons 1992 c. 4.entitled to more than one retirement pension);

(b) for any period for which widowed parent’s allowance orbereavement allowance is payable to the widow or widower byvirtue of the earner’s contributions; and

(c) in the case of a widow or widower whose entitlement by virtue ofthe earner’s contributions to a widowed parent’s allowance orbereavement allowance has come to an end at a time after thewidow or widower attained the age of 45, for so much of theperiod beginning with the time when the entitlement came to anend as neither—

(i) comprises a period during which the widow or widowerand a person of the opposite sex are living together as husbandand wife; nor

(ii) falls after the time of any remarriage by the widow orwidower.”

(2) In subsection (5) of that section—

(a) for “must provide” there shall be substituted “must also makeprovision”;

(b) the words “Category B retirement pension,”, in the first place wherethey occur, and the words from “or for which” onwards shall beomitted.

(3) In subsection (6) of that section, for “must provide” there shall besubstituted “must also make provision”.



Sch. 5Transfer of rights to overseas personal pension schemes

2.—(1) In section 20(1) of the 1993 Act (power to make provision for transferof rights relating to guaranteed minimum pensions to an occupational or apersonal pension scheme)—

(a) in paragraph (a), for “or to a personal pension scheme” there shall besubstituted “, to a personal pension scheme or to an overseasarrangement”; and

(b) in paragraph (b), for “or a personal pension scheme” there shall besubstituted “, a personal pension scheme or an overseas arrangement”.

(2) In section 28(2)(b) of that Act (effect may be given to protected rights bya transfer to an occupational or personal pension scheme)—

(a) in sub-paragraph (i), for “or to a personal pension scheme” there shallbe substituted “, to a personal pension scheme or to an overseasarrangement”; and

(b) in sub-paragraph (ii), for “or to an occupational pension scheme” thereshall be substituted “, to an occupational pension scheme or to anoverseas arrangement”.

(3) In section 181(1) of that Act (interpretation), there shall be inserted, at theappropriate place in the alphabetical order—

“‘overseas arrangement’ means a scheme or arrangement which—

(a) has effect, or is capable of having effect, so as to providebenefits on termination of employment or on death orretirement to or in respect of earners;

(b) is administered wholly or primarily outside GreatBritain;

(c) is not an appropriate scheme; and

(d) is not an occupational pension scheme;”.

Protected rights

3.—(1) Section 28 of the 1993 Act (ways of giving effect to protected rights)shall be amended as follows.

(2) In subsection (4) (giving effect to protected rights at or after retirementage), for paragraph (d) there shall be substituted—

“(d) the amount of the lump sum is equal to the value on that date ofthe protected rights to which effect is being given.”


“(4A) Subject to subsection (4B), in the case of an occupational pensionscheme, effect may be given to protected rights by the provision of a lumpsum if—

(a) the trustees or managers of the scheme are satisfied that themember is terminally ill and likely to die within the period oftwelve months beginning with the date on which the lump sumbecomes payable; and

(b) the amount of the lump sum is equal to the value on that date ofthe protected rights to which effect is being given.

(4B) The value of the protected rights to which effect may be given undersubsection (4A) in a case in which the member is a married person on thedate on which the lump sum becomes payable shall not exceed one half ofthe value on that date of all the member’s protected rights.”

(4) In subsections (3) and (5), for “or (4)”, in each case, there shall besubstituted “, (4) or (4A)”.



Sch. 5Review and alteration of rates of contribution

4. In section 42(1)(a)(i) and (3) of the 1993 Act (review of percentagesmentioned in section 41), for “41(1A)(a) and (b)” there shall be substituted“41(1A) and (1B)”.

Contributions equivalent premiums: Great Britain

5.—(1) For subsection (4) of section 58 of the 1993 Act (calculation ofcontributions equivalent premiums) there shall be substituted—

“(4) Subject to subsection (4A), the amount of the contributionsequivalent premium shall be equal to the sum of the following amounts—

(a) the amount of every reduction made under section 41 (as fromtime to time in force) in the amount of Class 1 contributionspayable in respect of the earner’s employment in employmentwhich was contracted-out by reference to the scheme; and

(b) the total amount by which the reductions falling within paragraph(a) would have been larger if the amount of the contributionsfalling to be reduced had in each case been at least equal to theamount of the reduction of those contributions provided for bysection 41.

(4A) The amounts brought into account in accordance with subsection(4)(b) shall not include any amount which, by virtue of regulations madeunder section 41(1D) so as to avoid the payment of trivial or fractionalamounts, is an amount that was not payable by the Inland Revenue to thesecondary contributor.”

(2) In section 61(2) of that Act (recovery of amount of premium attributableto primary Class 1 contributions), after “attributable to” there shall be inserted“any actual reductions of”.

(3) In section 63(1) of that Act (amounts to be certified by the InlandRevenue), for paragraph (b) there shall be substituted—

“(b) the sum of the amounts specified in section 58(4);”.

(4) This paragraph shall have effect, and be deemed to have had effect, inrelation to any contributions equivalent premium payable on or after 6th April1999.

Contributions equivalent premiums: Northern Ireland

6.—(1) For subsection (4) of section 54 of the Pension Schemes (Northern 1993 c. 49.Ireland) Act 1993 (calculation of contributions equivalent premiums) there shallbe substituted—

“(4) Subject to subsection (4A), the amount of the contributionsequivalent premium shall be equal to the sum of the following amounts—

(a) the amount of every reduction made under section 37 (as fromtime to time in force) in the amount of Class 1 contributionspayable in respect of the earner’s employment in employmentwhich was contracted-out by reference to the scheme; and

(b) the total amount by which the reductions falling within paragraph(a) would have been larger if the amount of the contributionsfalling to be reduced had in each case been at least equal to theamount of the reduction of those contributions provided for bysection 37.

(4A) The amounts brought into account in accordance with subsection(4)(b) shall not include any amount which, by virtue of regulations madeunder section 37(1D) so as to avoid the payment of trivial or fractionalamounts, is an amount that was not payable by the Inland Revenue to thesecondary contributor.”



Sch. 5(2) In section 57(2) of that Act (recovery of amount of premium attributable

to primary Class 1 contributions), after “attributable to” there shall be inserted“any actual reductions of”.

(3) In section 59(1) of that Act (amounts to be certified by the InlandRevenue), for paragraph (b) there shall be substituted—

“(b) the sum of the amounts specified in section 54(4);”.

(4) This paragraph shall have effect, and be deemed to have had effect, inrelation to any contributions equivalent premium payable on or after 6th April1999.

Use of cash equivalent for annuity

7. Section 95(4) of the 1993 Act (cash equivalent of rights under a moneypurchase contracted-out scheme not to be used for purchase of annuity) shallcease to have effect.

Transfer values where pension in payment

8.—(1) In section 97(2) of the 1993 Act (regulations about calculation of cashequivalents), for the “and” at the end of paragraph (a) there shall besubstituted—

“(aa) for a cash equivalent, including a guaranteed cash equivalent,to be reduced so as to take account of the extent (if any) to whichan entitlement has arisen under the scheme to the presentpayment of the whole or any part of—

(i) any pension; or

(ii) any benefit in lieu of pension;

and”.

(2) In section 98(7) of that Act (loss of right to cash equivalent)—

(a) after “right” there shall be inserted “if”; and

(b) paragraph (a) (loss of right on the whole or any part of a pensionbecoming payable) shall cease to have effect.

(3) In section 124(1) of the 1995 Act (interpretation), in the definition of“pensioner member”, after “other benefits” there shall be inserted “and who isnot an active member of the scheme”.

(4) Sub-paragraph (2) has effect in relation to any case in which the whole orany part of a pension or other benefit becomes payable on or after the cominginto force of that sub-paragraph.

Information about contracting-out

9. For section 156 of the 1993 Act (provision of information as to guaranteedminimum pensions) there shall be substituted—

“Information for 156.—(1) The Secretary of State or the Inland Revenue maypurposes of give to the trustees or managers of an occupational pensioncontracting-out. scheme or appropriate scheme such information as appears to

the Secretary of State or Inland Revenue appropriate to give tothem for the purpose of enabling them to comply with theirobligations under Part III.

(2) The Secretary of State or Inland Revenue may also giveto such persons as may be prescribed any information that theycould give under subsection (1) to trustees or managers of ascheme.”



Sch. 5Register of disqualified trustees

10.—(1) In subsection (7) of section 30 of the 1995 Act (disclosure of contentsof register of disqualified trustees), for the words from “and” onwards there shallbe substituted “but the arrangements made by the Authority for the register mustsecure that the contents of the register are not disclosed or otherwise madeavailable to members of the public except in accordance with section 30A.”


“(8) Nothing in subsection (7) requires the Authority to exclude anymatter from a report published under section 103.”

(3) After that section there shall be inserted—

“Accessibility of 30A.—(1) The Authority shall make arrangements thatregister of secure that the disqualification register is open, during thedisqualified normal working hours of the Authority, for inspection intrustees. person and without notice at—

(a) the principal office used by them for the carrying outof their functions under this Act; and

(b) such other offices (if any) of theirs as they consider tobe places where it would be reasonable for a copy ofthe register to be kept open for inspection.

(2) If a request is made to the Authority—

(a) to state whether a particular person identified in therequest is a person appearing in the disqualificationregister as disqualified in respect of a scheme specifiedin the request, or

(b) to state whether a particular person identified in therequest is a person appearing in that register asdisqualified in respect of all trust schemes,

it shall be the duty of the Authority promptly to comply withthe request in such manner as they consider reasonable.

(3) The Authority may, in such manner as they think fit,publish a summary of the disqualification register if (subject tosubsections (6) to (8)) the summary—

(a) contains all the information described in subsection(4);

(b) arranges that information in the manner described insubsection (5);

(c) does not (except by identifying a person as disqualifiedin respect of all trust schemes) identify any of theschemes in respect of which persons named in thesummary are disqualified; and

(d) does not disclose any other information contained inthe register.

(4) That information is—

(a) the full names and titles, so far as the Authority havea record of them, of all the persons appearing in theregister as persons who are disqualified;

(b) the dates of birth of such of those persons as arepersons whose dates of birth are matters of which theAuthority have a record; and

(c) in the case of each person whose name is included inthe published summary, whether that person appearsin the register—



Sch. 5(i) as disqualified in respect of only one scheme;

(ii) as disqualified in respect of two or moreschemes but not in respect of all trust schemes; or

(iii) as disqualified in respect of all trust schemes.

(5) For the purposes of paragraph (c) of subsection (4), theinformation contained in the published summary must bearranged in three separate lists, one for each of the descriptionsof disqualification specified in the three sub-paragraphs of thatparagraph.

(6) The Authority shall ensure, in the case of any publishedsummary, that a person is not identified in the summary as adisqualified person if it appears to them that the determinationby virtue of which that person appears in the register—

(a) is the subject of any pending review, appeal or legalproceedings which could result in that person’sremoval from the register; or

(b) is a determination which might still become the subjectof any such review, appeal or proceedings.

(7) The Authority shall ensure, in the case of any publishedsummary, that the particulars relating to a person do notappear in a particular list mentioned in subsection (5) if itappears to them that a determination by virtue of which thatperson’s particulars would appear in that list—

(a) is the subject of any pending review, appeal or legalproceedings which could result in such a revocation orother overturning of a disqualification of that personas would require his particulars to appear in adifferent list; or

(b) is a determination which might still become the subjectof any such review, appeal or proceedings.

(8) Where subsection (7) prevents a person’s particularsfrom being included in a particular list in the publishedsummary, they shall be included, instead, in the list in whichthey would have been included if the disqualification to whichthe review, appeal or proceedings relate had already beenrevoked or otherwise overturned.

(9) For the purposes of this section a determination is onewhich might still become the subject of a review, appeal orproceedings if, and only if, in the case of that determination—

(a) the time for the making of an application for a review,or for the bringing of an appeal or other proceedings,has not expired; and

(b) there is a reasonable likelihood that such anapplication might yet be made, or that such an appealor such proceedings might yet be brought.


‘the disqualification register’ means the register kept by theAuthority under section 30(7); and

‘name’, in relation to a person any of whose names isrecorded by the Authority as an initial, means thatinitial.”



Sch. 5Conditions of payment of surplus to employer

11.—(1) Section 37 of the 1995 Act (payment of surplus to employer) shall beamended as follows.

(2) For paragraph (d) of subsection (4) (conditions of payment of surplus)there shall be substituted—

“(d) the annual rates of the pensions under the scheme are increased,at intervals of not more than twelve months, by at least therelevant percentage,”.


“(5A) For the purposes of subsection (4)(d), the relevant percentage isthe percentage which, for the purposes of the increases of the annual ratesof the pensions under the scheme—

(a) falls to be computed by reference to a period which, except in thecase of the first increase—

(i) begins with the end of the period by reference to whichthe last preceding increase was made; and

(ii) ends with a date which falls after the date of the lastpreceding increase;

and

(b) is equal to whichever is the lesser of—

(i) the percentage increase in the retail prices index over theperiod by reference to which the increase is made; and

(ii) the equivalent over that period of 5 per cent. perannum.”

(4) In subsection (6) (interpretation of section), for the words from thebeginning to the end of paragraph (a) there shall be substituted—

“(6) In this section—

(a) ‘annual rate’ has the same meaning as in section 54, and”.

(5) The preceding provisions of this paragraph have effect in relation topayments made to an employer at any time after the commencement of thisparagraph.

Duties relating to statements of contributions

12.—(1) In section 41 of the 1995 Act (provision of documents for members),for subsection (5) there shall be substituted—

“(5) Regulations may in the case of occupational pension schemesprovide for—

(a) prescribed persons,

(b) persons with prescribed qualifications or experience, or

(c) persons approved by the Secretary of State,

to act for the purposes of subsection (2) instead of scheme auditors oractuaries.

(5A) Regulations may impose duties on the trustees or managers of anoccupational pension scheme to disclose information to, and makedocuments available to, a person acting under subsection (5).

(5B) If any duty imposed under subsection (5A) is not complied with,sections 3 and 10 apply to any trustee, and section 10 applies to anymanager, who has failed to take all such steps as are reasonable to securecompliance.”



Sch. 5(2) In section 49 of that Act, in subsection (9) (duties in event of employer’s

failure to pay contributions in prescribed period), after paragraph (b) there shallbe inserted “; and

(c) except in prescribed circumstances, any person acting instead ofan auditor for the purposes of section 41(2)(b) in relation to thescheme must give notice of the failure, within the prescribedperiod, to the Authority.”

(3) In that section, there shall be inserted after subsection (10)—

“(10A) Section 10 applies to a person who fails to comply withsubsection (9)(c).”

(4) In section 88 of that Act (payment schedule to money purchase schemes:supplementary), after subsection (4) there shall be inserted—

“(5) Except in prescribed circumstances, any person acting instead of anauditor for the purposes of section 41(2)(b) in relation to an occupationalpension scheme to which section 87 applies must, where any amountspayable in accordance with the payment schedule have not been paid on orbefore the due date, give notice of that fact, within the prescribed period,to the Authority.

(6) Section 10 applies to a person so acting who fails to comply withsubsection (5).”

Interpretation of Part I

13. In this Part of this Schedule—

“the 1993 Act” means the Pension Schemes Act 1993; and1993 c. 48.

1995 c. 26. “the 1995 Act” means the Pensions Act 1995.

Part II

Alternative to anti-franking rules

Cases in which alternative applies

14.—(1) Subject to the following provisions of this paragraph, this Part of thisSchedule applies, instead of Chapter III of Part IV of the 1993 Act (anti-frankingrules), in the case of a person (“the pensioner”) who is entitled to benefits underany occupational pension scheme if the benefits to which he is entitled under thescheme include a guaranteed minimum pension.

(2) This Part of this Schedule does not apply in the pensioner’s case, insteadof Chapter III of Part IV of the 1993 Act, unless—

(a) the pensioner is a member of the scheme who, in relation to that scheme,left pensionable service after the coming into force of this Part of thisSchedule;

(b) the pensioner is the widow or widower of a member of the scheme whosepensionable service ended (by death or otherwise) after the coming intoforce of this Part of this Schedule; or

(c) sub-paragraph (3) applies to the benefits to which the pensioner isentitled under the scheme.

(3) This sub-paragraph applies to the benefits to which the pensioner isentitled under the scheme if—

(a) the time at which the benefits first become payable is after the cominginto force of this Part of this Schedule;

(b) the benefits do not first become payable in respect of the death of amember of the scheme to whom benefits had already become payableunder the scheme before the coming into force of this Part of thisSchedule; and



Sch. 5(c) the trustees or managers of the scheme have elected, in the prescribed

manner, that this Part of this Schedule should apply to benefits firstbecoming payable under the scheme after the coming into force of thisPart of this Schedule.

(4) This Part of this Schedule does not apply in the pensioner’s case (and,accordingly, Chapter III of Part IV of the 1993 Act does) if the scheme is ascheme of a prescribed description, unless the trustees or managers of the schemehave elected, in the prescribed manner, that this Part of this Schedule shouldapply in the case of the scheme.

(5) An election for the purposes of any provision of this paragraph—

(a) shall not be exercisable differently in relation to differentmembers of thescheme; and

(b) once exercised, shall be irrevocable.

Alternative rules

15.—(1) Where this Part of this Schedule applies in the pensioner’s case, theamount of the benefits to which he is entitled under the scheme shall not be lessthan the amount of the benefits to which he would have been entitled under thescheme if his entitlement fell to be calculated by the method set out in sub-paragraph (2).

(2) That method is as follows—

Step 1: compute the amount of any benefits consisting in the guaranteedminimum pension to which the pensioner is entitled;

Step 2: compute what would have been the amount of those benefits on theassumptions set out in sub-paragraph (3);

Step 3: determine the extent (if any) to which attributing an amount ofbenefits equal to the amount computed in accordance with Step 2 torights accruing before 6th April 1997 would leave any such rightsunused;

Step 4: compute, in accordance with sub-paragraph (4), the amount of suchof the benefits to which the pensioner is entitled under the scheme asare attributable to rights accruing before 6th April 1997 (if any) which,applying the determination in Step 3, would be left unused after theattribution of the amount mentioned in that Step to rights so accruing;

Step 5: compute the amount resulting, on the required assumption, from theapplication of the statutory revaluations and increases in the case of thebenefits computed in accordance with Step 4;

Step 6: compute, in accordance with sub-paragraph (4), the amount of suchof the benefits to which the pensioner is entitled under the scheme as areattributable to rights accruing on or after 6th April 1997;

Step 7: compute the amount resulting, on the required assumption, from theapplication of the statutory revaluations and increases in the case of thebenefits computed in accordance with Step 6;

Step 8: aggregate the results of Steps 1, 5 and 7 to give the minimum benefitsrequired by sub-paragraph (1).

(3) The assumptions referred to in Step 2 in sub-paragraph (2) are—

(a) that no increases are required to be made in accordance with section 15or 109 of the 1993 Act (deferment increases and indexation);

(b) that increases in accordance with section 16(1) of that Act (revaluationof earnings factors for early leavers) of any earner’s earnings factors areto be calculated as if references to the final relevant year were referencesto whichever is the earlier of—

(i) the final relevant tax year; and



Sch. 5(ii) the tax year immediately preceding that in which the member

in question left service that qualified him for salary-related benefitsunder the scheme; and

(c) that no increases in accordance with any provision included in thescheme by virtue of section 16(3) of that Act (increases of weeklyequivalent for person leaving contracted-out service before finalrelevant year) are to be made for any year after the tax yearimmediately preceding that in which the member in question left servicethat qualified him for salary-related benefits under the scheme.

(4) For the purposes of Steps 4 and 6 in sub-paragraph (2)—

(a) if (apart from this sub-paragraph) there would be a difference betweenthe two Steps in the level of salary taken as the level by reference towhich any salary-related benefits are to be computed, the level used forStep 4 must be no lower than that used for Step 6; and

(b) statutory revaluations and increases shall not be attributed to rightsaccruing at any time.

(5) For the purposes of Steps 5 and 7 in sub-paragraph (2), the requiredassumption is that the benefits in whose case the statutory revaluations andincreases are applied comprise a whole pension deriving from the rights to whichthey are taken to be attributable for the purposes of Step 4 or, as the case maybe, Step 6.

(6) Subject to sub-paragraph (7), references in this paragraph to the statutoryrevaluations and increases are references to—

(a) the revaluations required to be made in accordance with Chapter II ofPart IV of the 1993 Act (revaluation of accrued benefits); and

(b) the increases required to be made by virtue of section 51 of the 1995 Act(indexation).

(7) For the purpose of applying the statutory revaluations and increases forthe purposes of Steps 5 and 7 in sub-paragraph (2)—

(a) money may be used in a way allowed by section 110(1) of the 1993 Act(use of money to pay guaranteed minimum pension increase forsubsequent year); and

(b) any deductions authorised by section 53(1) or (2) of the 1995 Act(permitted deductions from statutory increases) may be made.

(8) In this paragraph “the pensioner” has the meaning given by paragraph 14.

(9) Any reference in this paragraph to a provision of the 1993 Act includes areference to any enactment re-enacted in that provision.

Relationship between alternative rules and other rules

16.—(1) Paragraph 15 shall not apply to benefits consisting in an alternativeto a short service benefit provided for under section 73(2)(b) of the 1993 Act,except to the extent that—

(a) that paragraph would apply for the computation of the short servicebenefit to which those benefits are an alternative; and

(b) the amount of any of the alternative benefits falls to be computed whollyor partly by reference to the value of what would have been the shortservice benefit.

(2) Section 94 of the 1993 Act (right to cash equivalent) shall have effect as ifthe provisions of this Part of this Schedule were included for the purposes of thatsection in the applicable rules.

(3) Subject to sub-paragraph (4), the preceding provisions of this Part of thisSchedule override any provision of an occupational pension scheme with which



Sch. 5they are inconsistent except a provision which, under subsection (3) of section129 of the 1993 Act, is a protected provision for the purposes of subsection (2)of that section.

(4) The preceding provisions of this Part of this Schedule shall be withoutprejudice to any person’s entitlement to exercise—

(a) any right of commutation, forfeiture or surrender of the whole or anypart of any benefits computed in accordance with this Part of thisSchedule;

(b) any charge or lien on the whole or any part of any such benefits; or

(c) any right of set-off against the whole or any part of any such benefits;

and, accordingly, the computations to be done under paragraph 15 shall be donedisregarding anything falling within any of paragraphs (a) to (c).

Supplemental

17.—(1) In this Part of this Schedule references to rights accruing to a memberof a scheme before 6th April 1997 include references—

(a) in relation to salary-related benefits, to rights accruing at any time inrespect of service before that date; and

(b) in relation to benefits of any description, to rights that derive from anytransfer of accrued rights or transfer payment and represent rightsaccruing under any other scheme before that date;

and a reference in this Part of this Schedule to rights accruing on or after thatdate shall be construed accordingly.

(2) For the purposes of this Part of this Schedule rights to money purchasebenefits that are attributable to payments in respect of employment are rightsaccruing before 6th April 1997 in so far only as that employment wasemployment carried on before that date; and a reference in this Part of thisSchedule to rights accruing on or after that date shall be construed accordingly.

(3) In this Part of this Schedule—

“the 1993 Act” means the Pension Schemes Act 1993; 1993 c. 48.

1995 c. 26.“the 1995 Act” means the Pensions Act 1995; and

“salary-related benefits” means benefits that are not money purchasebenefits.

(4) Expressions defined for the purposes of the 1993 Act have the samemeanings in this Part of this Schedule as they have in that Act.

(5) Any power of the Secretary of State to make regulations under this Part ofthis Schedule shall be exercisable by statutory instrument subject to annulment inpursuance of a resolution of either House of Parliament.

(6) The Secretary of State may by order make such modifications ofparagraphs 14 to 16 as he considers appropriate.

(7) An order under sub-paragraph (6) shall be made by statutory instrumentsubject to annulment in pursuance of a resolution of either House of Parliament.

(8) Subsections (2) to (5) of section 182 of the 1993 Act (supplementalprovision in connection with powers to make subordinate legislation under thatAct) shall apply—

(a) to any power of the Secretary of State to make regulations under thisPart of this Schedule, and

(b) to the power of the Secretary of State to make an order under sub-paragraph (6),

as they apply to his powers to make regulations and orders under that Act.



Sch. 5(9) In section 178(a) of the 1993 Act (regulations providing for who is to be

treated as a manager of a scheme), for the words from “or Part III” to “1999”there shall be substituted “, Part III or IV of the Welfare Reform and Pensions1999 c. 30.Act 1999 or Part II of Schedule 5 to the Child Support, Pensions and SocialSecurity Act 2000”.


Social security investigation powers

Preliminary

1. Part VI of the Social Security Administration Act 1992 (enforcement) shall1992 c. 5.be amended as follows.

Replacement for inspector’s powers

2. The following sections shall be substituted for section 110 (appointment andpowers of inspectors)—

“Authorisations 109A.—(1) An individual who for the time being has thefor investigators. Secretary of State’s authorisation for the purposes of this Part

shall be entitled, for any one or more of the purposes mentionedin subsection (2) below, to exercise any of the powers which areconferred on an authorised officer by sections 109B and 109Cbelow.

(2) Those purposes are—

(a) ascertaining in relation to any case whether a benefit isor was payable in that case in accordance with anyprovision of the relevant social security legislation;

(b) investigating the circumstances in which any accident,injury or disease which has given rise, or may give rise,to a claim for—

(i) industrial injuries benefit, or(ii) any benefit under any provision of the

relevant social security legislation,

occurred or may have occurred, or was or may havebeen received or contracted;

(c) ascertaining whether provisions of the relevant socialsecurity legislation are being, have been or are likelyto be contravened (whether by particular persons ormore generally);

(d) preventing, detecting and securing evidence of thecommission (whether by particular persons or moregenerally) of benefit offences.

(3) An individual has the Secretary of State’s authorisationfor the purposes of this Part if, and only if, the Secretary ofState has granted him an authorisation for those purposes andhe is—

(a) an official of a Government department;

(b) an individual employed by an authority administeringhousing benefit or council tax benefit;

(c) an individual employed by an authority or jointcommittee that carries out functions relating tohousing benefit or council tax benefit on behalf of theauthority administering that benefit; or



Sch. 6(d) an individual employed by a person authorised by or

on behalf of any such authority or joint committee asis mentioned in paragraph (b) or (c) above to carryout functions relating to housing benefit or counciltax benefit for that authority or committee.

(4) An authorisation granted for the purposes of this Part toan individual of any of the descriptions mentioned insubsection (3) above—

(a) must be contained in a certificate provided to thatindividual as evidence of his entitlement to exercisepowers conferred by this Part;

(b) may contain provision as to the period for which theauthorisation is to have effect; and

(c) may restrict the powers exercisable by virtue of theauthorisation so as to prohibit their exercise exceptfor particular purposes, in particular circumstancesor in relation to particular benefits or particularprovisions of the relevant social security legislation.

(5) An authorisation granted under this section may bewithdrawn at any time by the Secretary of State.

(6) Where the Secretary of State grants an authorisation forthe purposes of this Part to an individual employed by a localauthority, or to an individual employed by a person who carriesout functions relating to housing benefit or council tax benefiton behalf of a local authority—

(a) the Secretary of State and the local authority shallenter into such arrangements (if any) as they considerappropriate with respect to the carrying out offunctions conferred on that individual by or inconnection with the authorisation granted to him;and

(b) the Secretary of State may make to the local authoritysuch payments (if any) as he thinks fit in respect of thecarrying out by that individual of any such functions.

(7) The matters on which a person may be authorised toconsider and report to the Secretary of State under section139A below shall be taken to include the carrying out by anysuch individual as is mentioned in subsection (3)(b) to (d) aboveof any functions conferred on that individual by virtue of anygrant by the Secretary of State of an authorisation for thepurposes of this Part.

(8) The powers conferred by sections 109B and 109C belowshall be exercisable in relation to persons holding office underthe Crown and persons in the service of the Crown, and inrelation to premises owned or occupied by the Crown, as theyare exercisable in relation to other persons and premises.

Power to require 109B.—(1) An authorised officer who has reasonableinformation. grounds for suspecting that a person—

(a) is a person falling within subsection (2) below, and

(b) has or may have possession of or access to any



Sch. 6information about any matter that is relevant for anyone or more of the purposes mentioned in section109A(2) above,

may, by written notice, require that person to provide all suchinformation described in the notice as is information of whichhe has possession, or to which he has access, and which it isreasonable for the authorised officer to require for a purpose somentioned.

(2) The persons who fall within this subsection are—

(a) any person who is or has been an employer oremployee within the meaning of any provision madeby or under the Contributions and Benefits Act;

(b) any person who is or has been a self-employed earnerwithin the meaning of any such provision;

(c) any person who by virtue of any provision made by orunder that Act falls, or has fallen, to be treated for thepurposes of any such provision as a person withinparagraph (a) or (b) above;

(d) any person who is carrying on, or has carried on, anybusiness involving the supply of goods for sale to theultimate consumers by individuals not carrying onretail businesses from retail premises;

(e) any person who is carrying on, or has carried on, anybusiness involving the supply of goods or services bythe use of work done or services performed by personsother than employees of his;

(f) any person who is carrying on, or has carried on, anagency or other business for the introduction orsupply, to persons requiring them, of personsavailable to do work or to perform services;

(g) any local authority acting in their capacity as anauthority responsible for the granting of any licence;

(h) any person who is or has been a trustee or manager ofa personal or occupational pension scheme;

(i) any person who is or has been liable to make acompensation payment or a payment to the Secretaryof State under section 6 of the Social Security1997 c. 27.(Recovery of Benefits) Act 1997 (payments in respectof recoverable benefits); and

(j) the servants and agents of any such person as isspecified in any of paragraphs (a) to (i) above.

(3) The obligation of a person to provide information inaccordance with a notice under this section shall be dischargedonly by the provision of that information, at such reasonabletime and in such form as may be specified in the notice, to theauthorised officer who—

(a) is identified by or in accordance with the terms of thenotice; or

(b) has been identified, since the giving of the notice, by afurther written notice given by the authorised officerwho imposed the original requirement or anotherauthorised officer.

(4) The power of an authorised officer under this section torequire the provision of information shall include a power torequire the production and delivery up and (if necessary)



Sch. 6creation of, or of copies of or extracts from, any suchdocuments containing the information as may be specified ordescribed in the notice imposing the requirement.

(5) No one shall be required under this section to provideany information (whether in documentary form or otherwise)that tends to incriminate either himself or, in the case of aperson who is married, his spouse.

Powers of entry. 109C.—(1) An authorised officer shall be entitled, at anyreasonable time and either alone or accompanied by such otherpersons as he thinks fit, to enter any premises which—

(a) are liable to inspection under this section; and

(b) are premises to which it is reasonable for him torequire entry in order to exercise the powers conferredby this section.

(2) An authorised officer who has entered any premisesliable to inspection under this section may—

(a) make such an examination of those premises, and

(b) conduct any such inquiry there,

as appears to him appropriate for any one or more of thepurposes mentioned in section 109A(2) above.

(3) An authorised officer who has entered any premisesliable to inspection under this section may—

(a) question any person whom he finds there;

(b) require any person whom he finds there to do any oneor more of the following—

(i) to provide him with such information,

(ii) to produce and deliver up and (if necessary)create such documents or such copies of, or extractsfrom, documents,

as he may reasonably require for any one or more ofthe purposes mentioned in section 109A(2) above;and

(c) take possession of and either remove or make his owncopies of any such documents as appear to him tocontain information that is relevant for any of thosepurposes.

(4) The premises liable to inspection under this section areany premises (including premises consisting in the whole or apart of a dwelling house) which an authorised officer hasreasonable grounds for suspecting are—

(a) premises which are a person’s place of employment;

(b) premises from which a trade or business is beingcarried on or where documents relating to a trade orbusiness are kept by the person carrying it on or byanother person on his behalf;

(c) premises from which a personal or occupationalpension scheme is being administered or wheredocuments relating to the administration of such ascheme are kept by the person administering thescheme or by another person on his behalf;

(d) premises where a person who is the compensator inrelation to any such accident, injury or disease as isreferred to in section 109A(2)(b) above is to be found;



Sch. 6(e) premises where a person on whose behalf any such

compensator has made, may have made or may makea compensation payment is to be found.

(5) An authorised officer applying for admission to anypremises in accordance with this section shall, if required to doso, produce the certificate containing his authorisation for thepurposes of this Part.

(6) Subsection (5) of section 109B applies for the purposes ofthis section as it applies for the purposes of that section.”

Exercise of powers on behalf of local authorities

3. For sections 110A and 110B (inspectors appointed by local authorities etc.for the purposes of housing benefit or council tax benefit), there shall besubstituted—

“Authorisations 110A.—(1) An individual who for the time being has theby local authorisation for the purposes of this Part of an authorityauthorities. administering housing benefit or council tax benefit (‘a local

authority authorisation’) shall be entitled, for any one or moreof the purposes mentioned in subsection (2) below, to exerciseany of the powers which, subject to subsection (8) below, areconferred on an authorised officer by sections 109B and 109Cabove.

(2) Those purposes are—

(a) ascertaining in relation to any case whether housingbenefit or council tax benefit is or was payable inthat case;

(b) ascertaining whether provisions of the relevant socialsecurity legislation that relate to housing benefit orcouncil tax benefit are being, have been or are likelyto be contravened (whether by particular persons ormore generally);

(c) preventing, detecting and securing evidence of thecommission (whether by particular persons or moregenerally) of benefit offences relating to housingbenefit or council tax benefit.

(3) An individual has the authorisation for the purposes ofthis Part of an authority administering housing benefit orcouncil tax benefit if, and only if, that authority have grantedhim an authorisation for those purposes and he is—

(a) an individual employed by that authority;

(b) an individual employed by another authority or jointcommittee that carries out functions relating tohousing benefit or council tax benefit on behalf of thatauthority;

(c) an individual employed by a person authorised by oron behalf of—

(i) the authority in question,

(ii) any such authority or joint committee as ismentioned in paragraph (b) above,

to carry out functions relating to housing benefit orcouncil tax benefit for that authority or committee;

(d) an official of a Government department.



Sch. 6(4) Subsection (4) of section 109A above shall apply in

relation to a local authority authorisation as it applies inrelation to an authorisation under that section.

(5) A local authority authorisation may be withdrawn at anytime by the authority that granted it or by the Secretary ofState.

(6) The certificate or other instrument containing the grantor withdrawal by any local authority of any local authorityauthorisation must be issued under the hand of either—

(a) the officer designated under section 4 of the Local 1989 c. 42.Government and Housing Act 1989 as the head of theauthority’s paid service; or

(b) the officer who is the authority’s chief finance officer(within the meaning of section 5 of that Act).

(7) It shall be the duty of any authority with power to grantlocal authority authorisations to comply with any directions ofthe Secretary of State as to—

(a) whether or not such authorisations are to be grantedby that authority;

(b) the period for which authorisations granted by thatauthority are to have effect;

(c) the number of persons who may be grantedauthorisations by that authority at any one time; and

(d) the restrictions to be contained by virtue of subsection(4) above in the authorisations granted by thatauthority for those purposes.

(8) The powers conferred by sections 109B and 109C aboveshall have effect in the case of an individual who is anauthorised officer by virtue of this section as if those sectionshad effect—

(a) with the substitution for every reference to thepurposes mentioned in section 109A(2) above of areference to the purposes mentioned in subsection (2)above; and

(b) with the substitution for every reference to the relevantsocial security legislation of a reference to so much ofit as relates to housing benefit or council tax benefit.

(9) Nothing in this section conferring any power on anauthorised officer in relation to housing benefit or council taxbenefit shall require that power to be exercised only in relationto cases in which the authority administering the benefit is theauthority by whom that officer’s authorisation was granted.”

Consequential amendments

4. In section 111 (delay and obstruction of inspector)—

(a) in subsection (3), for “section 110(5)” there shall be substituted “anauthorisation granted under section 109A or 110A”; and

(b) in subsection (4)—

(i) for “section 110(5) above any power conferred by section 110above” there shall be substituted “an authorisation granted undersection 109A or 110A above, any power conferred by section 109Bor 109C above”; and

(ii) for the words “section 110”, where they occur at the end of thesubsection, there shall be substituted “sections 109B and 109C”.



Sch. 65. In section 111A(1) (dishonest representations), before “social security

legislation” there shall be inserted “relevant”.

6. In section 112(1) (false representations), before “social security legislation”there shall be inserted “relevant”.

7.—(1) In subsection (1) of section 113 (breach of regulations)—

(a) for “Acts to which section 110 above applies” there shall be substituted“legislation to which this section applies”;

(b) for the words “that Act”, in the first place where they occur, there shallbe substituted “that legislation”; and

(c) for the words “that Act”, where they occur in paragraph (b), there shallbe substituted “any enactment contained in the legislation in question”.


“(1A) The legislation to which this section applies is—

(a) the relevant social security legislation; and

(b) the enactments specified in section 121DA(1) so far as relating tocontributions, statutory sick pay or statutory maternity pay.”

8. After section 121D (but still in Part VI) there shall be inserted—

“Interpretation of 121DA.—(1) In this Part ‘the relevant social securityPart VI. legislation’ means the provisions of any of the following, except

so far as relating to contributions, working families’ tax credit,disabled person’s tax credit, statutory sick pay or statutorymaternity pay, that is to say—

(a) the Contributions and Benefits Act;

(b) this Act;

(c) the Pensions Act, except Part III;

(d) section 4 of the Social Security (Incapacity for Work)1994 c. 18.Act 1994;

(e) the Jobseekers Act 1995;1995 c. 18.

1997 c. 27. (f) the Social Security (Recovery of Benefits) Act 1997;

(g) Parts I and IV of the Social Security Act 1998;1998 c. 14.

1999 c. 30. (h) Part V of the Welfare Reform and Pensions Act 1999;

(i) the Social Security Pensions Act 1975;1975 c. 60.

1973 c. 38. (j) the Social Security Act 1973;

(k) any subordinate legislation made, or having effect as ifmade, under any enactment specified in paragraphs(a) to (j) above.

(2) In this Part ‘authorised officer’ means a person acting inaccordance with any authorisation for the purposes of this Partwhich is for the time being in force in relation to him.

(3) For the purposes of this Part—

(a) references to a document include references toanything in which information is recorded inelectronic or any other form;

(b) the requirement that a notice given by an authorisedofficer be in writing shall be taken to be satisfied in anycase where the contents of the notice—

(i) are transmitted to the recipient of the noticeby electronic means; and



Sch. 6(ii) are received by him in a form that is legible

and capable of being recorded for future reference.

(4) In this Part ‘premises’ includes—

(a) moveable structures and vehicles, vessels, aircraft andhovercraft;

(b) installations that are offshore installations for thepurposes of the Mineral Workings (Offshore 1971 c. 61.Installations) Act 1971; and

(c) places of all other descriptions whether or notoccupied as land or otherwise;

and references in this Part to the occupier of any premises shallbe construed, in relation to premises that are not occupied asland, as references to any person for the time being present atthe place in question.

(5) In this Part—

‘benefit’ includes any allowance, payment, credit or loan;

‘benefit offence’ means a criminal offence committed inconnection with a claim for benefit under a provisionof the relevant social security legislation, or inconnection with the receipt or payment of such abenefit; and

‘compensation payment’ has the same meaning as in theSocial Security (Recovery of Benefits) Act 1997. 1997 c. 27.

(6) In this Part—

(a) any reference to a person authorised to carry out anyfunction relating to housing benefit or council taxbenefit shall include a reference to a person providingservices relating to the benefit directly or indirectly toan authority administering it; and

(b) any reference to the carrying out of a function relatingto such a benefit shall include a reference to theprovision of any services relating to it.

(7) In this section ‘subordinate legislation’ has the samemeaning as in the Interpretation Act 1978.” 1978 c. 30.

9. In paragraph 5 of Schedule 10 to the Social Security Administration Act 1992 c. 5.1992 (transitional provisions for supplementary benefit), for the words beforesub-paragraph (a) there shall be substituted “Part VI of this Act shall have effectas if the following Acts were included in the Acts comprised in the relevant socialsecurity legislation”.


Housing benefit and council tax benefit: revisions and appeals

Introductory

1.—(1) In this Schedule “relevant authority” means an authorityadministering housing benefit or council tax benefit.

(2) In this Schedule “relevant decision” means any of the following—

(a) a decision of a relevant authority on a claim for housing benefit orcouncil tax benefit;



Sch. 7(b) any decision under paragraph 4 of this Schedule which supersedes a

decision falling within paragraph (a), within this paragraph or withinparagraph (b) of sub-paragraph (1) of that paragraph;

but references in this Schedule to a relevant decision do not include references toa decision under paragraph 3 to revise a relevant decision.

Decisions on claims for benefit

2. Where at any time a claim for housing benefit or council tax benefit isdecided by a relevant authority—

(a) the claim shall not be regarded as subsisting after that time; and

(b) accordingly, the claimant shall not (without making a further claim) beentitled to the benefit on the basis of circumstances not obtaining atthat time.

Revision of decisions

3.—(1) Any relevant decision may be revised or further revised by the relevantauthority which made the decision—

(a) either within the prescribed period or in prescribed cases orcircumstances; and

(b) either on an application made for the purpose by a person affected bythe decision or on their own initiative;

and regulations may prescribe the procedure by which a decision of a relevantauthority may be so revised.

(2) In making a decision under sub-paragraph (1), the relevant authority neednot consider any issue that is not raised by the application or, as the case may be,did not cause them to act on their own initiative.

(3) Subject to sub-paragraphs (4) and (5) and paragraph 18, a revision underthis paragraph shall take effect as from the date on which the original decisiontook (or was to take) effect.

(4) Regulations may provide that, in prescribed cases or circumstances, arevision under this paragraph shall take effect as from such other date as may beprescribed.

(5) Where a decision is revised under this paragraph, for the purposes of anyrule as to the time allowed for bringing an appeal, the decision shall be regardedas made on the date on which it is so revised.

(6) Except in prescribed circumstances, an appeal against a decision of therelevant authority shall lapse if the decision is revised under this paragraphbefore the appeal is determined.

Decisions superseding earlier decisions

4.—(1) Subject to sub-paragraph (4), the following, namely—

(a) any relevant decision (whether as originally made or as revised underparagraph 3), and

(b) any decision under this Schedule of an appeal tribunal or aCommissioner,

may be superseded by a decision made by the appropriate relevant authority,either on an application made for the purpose by a person affected by thedecision or on their own initiative.

(2) In this paragraph “the appropriate relevant authority” means theauthority which made the decision being superseded, the decision appealedagainst to the tribunal or, as the case may be, the decision to which the decisionbeing appealed against to the Commissioner relates.



Sch. 7(3) In making a decision under sub-paragraph (1), the relevant authority need

not consider any issue that is not raised by the application or, as the case may be,did not cause them to act on their own initiative.

(4) Regulations may prescribe the cases and circumstances in which, and theprocedure by which, a decision may be made under this paragraph.

(5) Subject to sub-paragraph (6) and paragraph 18, a decision under thisparagraph shall take effect as from the date on which it is made or, whereapplicable, the date on which the application was made.

(6) Regulations may provide that, in prescribed cases or circumstances, adecision under this paragraph shall take effect as from such other date as may beprescribed.

Use of experts by relevant authorities

5. Where it appears to a relevant authority that a matter in relation to whicha relevant decision falls to be made by them involves a question of fact requiringspecial expertise, they may direct that, in dealing with that matter, they shall havethe assistance of one or more persons appearing to them to have knowledge orexperience which would be relevant in determining that question.

Appeal to appeal tribunal

6.—(1) Subject to sub-paragraph (2), this paragraph applies to any relevantdecision (whether as originally made or as revised under paragraph 3) of arelevant authority which—

(a) is made on a claim for, or on an award of, housing benefit or council taxbenefit; or

(b) does not fall within paragraph (a) but is of a prescribed description.

(2) This paragraph does not apply to—

(a) any decision terminating or reducing the amount of a person’s housingbenefit or council tax benefit that is made in consequence of anydecision made under regulations under section 2A of theAdministration Act (work-focused interviews);

(b) any decision of a relevant authority as to the application or operationof any modification of a housing benefit scheme or council tax benefitscheme under section 134(8)(a) or section 139(6)(a) of theAdministration Act (disregard of war disablement and war widows’pensions);

(c) so much of any decision of a relevant authority as adopts a decision ofa rent officer under any order made by virtue of section 122 of theHousing Act 1996 (decisions of rent officers for the purposes of 1996 c. 52.housing benefit);

(d) any decision of a relevant authority as to the amount of benefit to whicha person is entitled in a case in which the amount is determined by therate of benefit provided for by law; or

(e) any such other decision as may be prescribed.

(3) In the case of a decision to which this paragraph applies, any personaffected by the decision shall have a right to appeal to an appeal tribunal.

(4) Nothing in sub-paragraph (3) shall confer a right of appeal in relation to—

(a) a prescribed decision; or

(b) a prescribed determination embodied in or necessary to a decision.

(5) Regulations under sub-paragraph (4) shall not prescribe any decision ordetermination that relates to the conditions of entitlement to housing benefit orcouncil tax benefit for which a claim has been validly made.



Sch. 7(6) Where any amount of housing benefit or council tax benefit is determined

to be recoverable under or by virtue of section 75 or 76 of the Administration Act(overpayments and excess benefits), any person from whom it has beendetermined that it is so recoverable shall have a right of appeal to an appealtribunal.

(7) A person with a right of appeal under this paragraph shall be given suchnotice of the decision in respect of which he has that right, and of that right, asmay be prescribed.

(8) Regulations may make provision as to the manner in which, and the timewithin which, appeals are to be brought.

(9) In deciding an appeal under this paragraph, an appeal tribunal—

(a) need not consider any issue that is not raised by the appeal; and

(b) shall not take into account any circumstances not obtaining at the timewhen the decision appealed against was made.

Redetermination etc. of appeals by tribunal

7.—(1) This paragraph applies where an application is made to a person forleave under paragraph 8(7)(a) or (c) to appeal from a decision of an appealtribunal.

(2) If the person considers that the decision was erroneous in point of law, hemay set aside the decision and refer the case either for redetermination by thetribunal or for determination by a differently constituted tribunal.

(3) If each of the principal parties to the case expresses the view that thedecision was erroneous in point of law, the person shall set aside the decision andrefer the case for determination by a differently constituted tribunal.

(4) In this paragraph and paragraph 8 “principal parties” means—

(a) where he is the applicant for leave to appeal or the circumstances areotherwise such as may be prescribed, the Secretary of State;

(b) the relevant authority against whose decision the appeal to the appealtribunal was brought; and

(c) the person affected by the decision against which the appeal to theappeal tribunal was brought or by the tribunal’s decision on thatappeal.

Appeal from tribunal to Commissioner

8.—(1) Subject to the provisions of this paragraph, an appeal lies to aCommissioner from any decision of an appeal tribunal under paragraph 6 or 7on the ground that the decision of the tribunal was erroneous in point of law.

(2) An appeal lies under this paragraph at the instance of any of thefollowing—

(a) the Secretary of State;

(b) the relevant authority against whose decision the appeal to the appealtribunal was brought;

(c) any person affected by the decision against which the appeal to theappeal tribunal was brought or by the tribunal’s decision on thatappeal.

(3) If each of the principal parties to the appeal expresses the view that thedecision appealed against was erroneous in point of law, the Commissioner mayset aside the decision and refer the case to a tribunal with directions for itsdetermination.

(4) Where the Commissioner holds that the decision appealed against waserroneous in point of law, he shall set it aside.



Sch. 7(5) Where under sub-paragraph (4) the Commissioner sets aside a decision—

(a) he shall have power, if he can do so without making fresh or furtherfindings of fact, to give the decision which he considers the tribunalshould have given;

(b) he shall also have power, if he considers it expedient, to make suchfindings and to give such decision as he considers appropriate in thelight of them; and

(c) if he does not exercise the power in paragraph (a) or (b), he shall referthe case to a tribunal with directions for its determination.

(6) Subject to any direction of the Commissioner, a reference under sub-paragraph (3) or (5)(c) shall be to a differently constituted tribunal.

(7) No appeal lies under this paragraph without leave; and leave for thepurposes of this sub-paragraph may be given—

(a) by the person who constituted, or was the chairman of, the tribunalwhen the decision to be appealed against was given;

(b) subject to and in accordance with regulations, by a Commissioner; or

(c) in a prescribed case, by such person not falling within paragraph (a) or(b) as may be prescribed.

(8) Regulations may make provision as to the manner in which, and the timewithin which, appeals are to be brought and applications made for leave toappeal.

Appeal from Commissioner on point of law

9.—(1) Subject to sub-paragraphs (2) and (3), an appeal on a question of lawshall lie to the appropriate court from any decision of a Commissioner.

(2) No appeal under this paragraph shall lie from a decision except—

(a) with the leave of the Commissioner who gave the decision or, in aprescribed case, with the leave of a Commissioner selected inaccordance with regulations; or

(b) if he refuses leave, with the leave of the appropriate court.

(3) An application for leave under this paragraph in respect of aCommissioner’s decision may only be made by—

(a) a person who, before the proceedings before the Commissioner werebegun, was entitled to appeal to the Commissioner from the decision towhich the Commissioner’s decision relates;

(b) any other person who was a party to the proceedings in which thedecision to which the Commissioner’s decision relates was given;

(c) any other person who is authorised by regulations to apply for leave;

and regulations may make provision with respect to the manner in which, andthe time within which, applications must be made to a Commissioner for leaveunder this paragraph, and with respect to the procedure for dealing with suchapplications.

(4) On an application to a Commissioner for leave under this paragraph, itshall be the duty of the Commissioner to specify as the appropriate court—

(a) the Court of Appeal if it appears to him that the relevant dwelling is inEngland or Wales; and



Sch. 7(b) the Court of Session if it appears to him that the relevant dwelling is in

Scotland;

except that if it appears to him, having regard to the circumstances of the caseand in particular to the convenience of the persons who may be parties to theproposed appeal, that he should specify a different court mentioned in paragraph(a) or (b) as the appropriate court, it shall be his duty to specify that court as theappropriate court.


“the appropriate court”, except in sub-paragraph (4), means the courtspecified in pursuance of that sub-paragraph;

“the relevant dwelling”, in relation to any decision, means the dwelling byreference to which any claim or award of housing benefit or council taxbenefit to which the decision relates was made.

Procedure

10.—(1) Regulations may make for the purposes of this Schedule any suchprovision as is specified in Schedule 5 to the Social Security Act 1998, or as would1998 c. 14.be so specified if the references to the Secretary of State in paragraph 1 of thatSchedule were references to a relevant authority.

(2) Regulations prescribing the procedure to be followed in cases before aCommissioner shall provide that any hearing shall be in public except in so faras the Commissioner for special reasons otherwise directs.

(3) It is hereby declared that the power by regulations to prescribe procedureincludes power—

(a) to make provision as to the representation of one person, at any hearingof a case, by another person whether having professional qualificationsor not; and

(b) to confer on the Secretary of State a right to be represented and heardin any proceedings before a Commissioner to which he is not alreadya party.

(4) If it appears to a Commissioner that a matter before him involves aquestion of fact of special difficulty, he may direct that in dealing with that matterhe shall have the assistance of one or more persons appearing to him to haveknowledge or experience which would be relevant in determining that question.

(5) If it appears to the Chief Commissioner (or, in the case of his inability toact, to such other of the Commissioners as he may have nominated to act for thepurpose) that—

(a) an application for leave under paragraph 8(7)(b), or

(b) an appeal,

falling to be heard by one of the Commissioners involves a question of law ofspecial difficulty, he may direct that the application or appeal be dealt with, notby that Commissioner alone, but by a tribunal consisting of any three or moreof the Commissioners.

(6) If the decision of such a tribunal is not unanimous, the decision of themajority shall be the decision of the tribunal; and the presiding Commissionershall have a casting vote if the votes (including his first vote) are equally divided.

(7) Where a direction is given under sub-paragraph (5)(a), paragraph 8(7)(b)shall have effect as if the reference to a Commissioner were a reference to such atribunal as is mentioned in sub-paragraph (5).

(8) Except so far as it may be applied in relation to England and Wales byregulations, Part I of the Arbitration Act 1996 shall not apply to any proceedings1996 c. 23.under this Schedule.



Sch. 7Finality of decisions

11. Subject to the provisions of this Schedule, any decision made in accordancewith the preceding provisions of this Schedule shall be final.

Matters arising as respects decisions

12. Regulations may make provision as respects matters arising—

(a) pending any decision under this Schedule of a relevant authority, anappeal tribunal or a Commissioner which relates to—

(i) any claim for housing benefit or council tax benefit;

(ii) any person’s entitlement to such a benefit or its receipt;

or

(b) out of the revision under paragraph 3, or on appeal, of any suchdecision.

Suspension in prescribed circumstances

13.—(1) Regulations may provide for—

(a) suspending, in whole or in part, any payments of housing benefit orcouncil tax benefit;

(b) suspending, in whole or in part, any reduction (by way of council taxbenefit) in the amount that a person is or will become liable to pay inrespect of council tax;

(c) the subsequent making, or restoring, in prescribed circumstances of anyor all of the payments, or reductions, so suspended.

(2) Regulations made under sub-paragraph (1) may, in particular, makeprovision for any case where, in relation to a claim for housing benefit or counciltax benefit—

(a) it appears to the relevant authority that an issue arises whether theconditions for entitlement to such a benefit are or were fulfilled;

(b) it appears to the relevant authority that an issue arises whether adecision as to an award of such a benefit should be revised (underparagraph 3) or superseded (under paragraph 4);

(c) an appeal is pending against a decision of an appeal tribunal, aCommissioner or a court; or

(d) it appears to the relevant authority, where an appeal is pending againstthe decision given by a Commissioner or a court in a different case, thatif the appeal were to be determined in a particular way an issue wouldarise whether the award of housing benefit or council tax benefit in thecase itself ought to be revised or superseded.

(3) For the purposes of sub-paragraph (2), an appeal against a decision ispending if—

(a) an appeal against the decision has been brought but not determined;

(b) an application for leave to appeal against the decision has been madebut not determined; or

(c) the time within which—

(i) an application for leave to appeal may be made, or

(ii) an appeal against the decision may be brought,

has not expired and the circumstances are such as may be prescribed.

(4) In sub-paragraph (2)(d) the reference to a different case—



Sch. 7(a) includes a reference to a case involving a different relevant authority;

but

(b) does not include a reference to a case relating to a different benefit unlessthe different benefit is housing benefit or council tax benefit.

Suspension for failure to furnish information etc.

14.—(1) The powers conferred by this paragraph are exercisable in relation topersons who fail to comply with information requirements.

(2) Regulations may provide for—

(a) suspending, in whole or in part, any payments of housing benefit orcouncil tax benefit;

(b) suspending, in whole or in part, any reduction (by way of council taxbenefit) in the amount that a person is or will become liable to pay inrespect of council tax;

(c) the subsequent making, or restoring, in prescribed circumstances of anyor all of the payments, or any right, so suspended.

(3) In this paragraph and paragraph 15 “information requirement” means—

(a) in the case of housing benefit, a requirement in pursuance of regulationsmade by virtue of section 5(1)(hh) of the Administration Act to furnishinformation or evidence needed for a determination whether a decisionon an award of that benefit should be revised under paragraph 3 orsuperseded under paragraph 4 of this Schedule; and

(b) in the case of council tax benefit, a requirement made in pursuance ofregulations under section 6(1)(hh) of the Administration Act to furnishinformation or evidence needed for a determination whether a decisionon an award of that benefit should be so revised or superseded.

Termination in cases of a failure to furnish information

15. Regulations may provide that, except in prescribed cases orcircumstances—

(a) a person whose benefit has been suspended in accordance withregulations under paragraph 13 and who subsequently fails to complywith an information requirement, or

(b) a person whose benefit has been suspended in accordance withregulations under paragraph 14 for failing to comply with such arequirement,

shall cease to be entitled to the benefit from a date not earlier than the date onwhich payments were suspended.

Decisions involving issues that arise on appeal in other cases

16.—(1) This paragraph applies where—

(a) a relevant decision, or a decision under paragraph 3 about the revisionof an earlier decision, falls to be made in any particular case; and

(b) an appeal is pending against the decision given in another case by aCommissioner or a court.

(2) A relevant authority need not make the decision while the appeal ispending if they consider it possible that the result of the appeal will be such that,if it were already determined, there would be no entitlement to benefit.

(3) If a relevant authority consider it possible that the result of the appeal willbe such that, if it were already determined, it would affect the decision in someother way—



Sch. 7(a) they need not, except in such cases or circumstances as may be

prescribed, make the decision while the appeal is pending;

(b) they may, in such cases or circumstances as may be prescribed, make thedecision on such basis as may be prescribed.

(4) Where—

(a) a relevant authority act in accordance with sub-paragraph (3)(b), and

(b) following the making of the determination it is appropriate for theirdecision to be revised,

they shall then revise their decision (under paragraph 3) in accordance with thatdetermination.

(5) For the purposes of this paragraph, an appeal against a decision ispending if—







(6) In paragraphs (a), (b) and (c) of sub-paragraph (5), any reference to anappeal against a decision, or to an application for leave to appeal against adecision, includes a reference to—

(a) an application for judicial review of the decision under section 31 of theSupreme Court Act 1981 or for leave to apply for judicial review; or 1981 c. 54.

(b) an application to the supervisory jurisdiction of the Court of Session inrespect of the decision.

(7) In sub-paragraph (1)(b) the reference to another case—

(a) includes a reference to a case involving a decision made, or falling to bemade, by a different relevant authority; but

(b) does not include a reference to a case relating to another benefit unlessthe other benefit is housing benefit or council tax benefit.

Appeals involving issues that arise on appeal in other cases

17.—(1) This paragraph applies where—

(a) an appeal (“appeal A”) in relation to a relevant decision (whether asoriginally made or as revised under paragraph 3) is made to an appealtribunal, or from an appeal tribunal to a Commissioner; and

(b) an appeal (“appeal B”) is pending against a decision given in a differentcase by a Commissioner or a court.

(2) If the relevant authority whose decision gave rise to appeal A consider itpossible that the result of appeal B will be such that, if it were already determined,it would affect the determination of appeal A, they may serve notice requiring thetribunal or Commissioner—

(a) not to determine appeal A but to refer it to them; or

(b) to deal with the appeal in accordance with sub-paragraph (4).

(3) Where appeal A is referred to the authority under sub-paragraph (2)(a),following the determination of appeal B and in accordance with thatdetermination, they shall if appropriate—

(a) in a case where appeal A has not been determined by the tribunal, revise(under paragraph 3) their decision which gave rise to that appeal; or



Sch. 7(b) in a case where appeal A has been determined by the tribunal, make a

decision (under paragraph 4) superseding the tribunal’s decision.

(4) Where appeal A is to be dealt with in accordance with this sub-paragraph,the appeal tribunal or Commissioner shall either—

(a) stay appeal A until appeal B is determined; or

(b) if the tribunal or Commissioner considers it to be in the interests of theappellant to do so, determine appeal A as if—

(i) appeal B had already been determined; and

(ii) the issues arising on appeal B had been decided in the way thatwas most unfavourable to the appellant.

(5) Where the appeal tribunal or Commissioner acts in accordance with sub-paragraph (4)(b), following the determination of appeal B the relevant authoritywhose decision gave rise to appeal A shall, if appropriate, make a decision (underparagraph 4) superseding the decision of the tribunal or Commissioner inaccordance with that determination.

(6) For the purposes of this paragraph, an appeal against a decision ispending if—








(a) the reference in sub-paragraph (1)(a) to an appeal to a Commissionerincludes a reference to an application for leave to appeal to aCommissioner;

(b) the reference in sub-paragraph (1)(b) to a different case—

(i) includes a reference to a case involving a different relevantauthority; but

(ii) does not include a reference to a case relating to a differentbenefit unless the different benefit is housing benefit or council taxbenefit; and

(c) any reference in paragraph (a), (b) or (c) of sub-paragraph (6) to anappeal, or to an application for leave to appeal, against a decisionincludes a reference to—

(i) an application for judicial review of the decision under section31 of the Supreme Court Act 1981 or for leave to apply for judicial1981 c. 54.review; or

(ii) an application to the supervisory jurisdiction of the Court ofSession in respect of the decision.

(8) In sub-paragraph (4) “the appellant” means the person who appealed or,as the case may be, first appealed against the decision mentioned in sub-paragraph (1)(a).

(9) Regulations may make provision supplementing the provision made bythis paragraph.



Sch. 7Restrictions on entitlement to benefit in certain cases of error

18.—(1) Subject to sub-paragraph (2), this paragraph applies where—

(a) the effect of the determination, whenever made, of an appeal by virtueof this Schedule to a Commissioner or the court (“the relevantdetermination”) is that the relevant authority’s decision out of whichthe appeal arose was erroneous in point of law; and

(b) after the date of the relevant determination a decision falls to be madeby that relevant authority or another relevant authority in accordancewith that determination (or would, apart from this paragraph, fall tobe so made)—

(i) in relation to a claim for housing benefit or council tax benefit;

(ii) as to whether to revise, under paragraph 3, a decision as to aperson’s entitlement to such a benefit; or

(iii) on an application made under paragraph 4 for a decision asto a person’s entitlement to such a benefit to be superseded.

(2) This paragraph does not apply where the decision mentioned in sub-paragraph (1)(b)—

(a) is one which, but for paragraph 16(2) or (3)(a), would have been madebefore the date of the relevant determination; or

(b) is one made in pursuance of paragraph 17(3) or (5).

(3) In so far as the decision relates to a person’s entitlement to benefit inrespect of a period before the date of the relevant determination, it shall be madeas if the relevant authority’s decision had been found by the Commissioner orcourt not to have been erroneous in point of law.

(4) Sub-paragraph (1)(a) shall be read as including a case where—

(a) the effect of the relevant determination is that part or all of a purportedregulation or order is invalid; and

(b) the error of law made by the relevant authority was to act on the basisthat the purported regulation or order (or the part held to be invalid)was valid.

(5) It is immaterial for the purposes of sub-paragraph (1)—

(a) where such a decision as is mentioned in paragraph (b)(i) falls to bemade, whether the claim was made before or after the date of therelevant determination;

(b) where such a decision as is mentioned in paragraph (b)(ii) or (iii) falls tobe made on an application under paragraph 3 or (as the case may be)4, whether the application was made before or after that date.

(6) In this paragraph “the court” means—

(a) the High Court;

(b) the Court of Appeal;

(c) the Court of Session;

(d) the House of Lords; or

(e) the Court of Justice of the European Community.

(7) For the purposes of this paragraph, any reference to entitlement to benefitincludes a reference to entitlement—

(a) to any increase in the rate of a benefit; or

(b) to a benefit, or increase of benefit, at a particular rate.

(8) The date of the relevant determination shall, in prescribed cases, bedetermined for the purposes of this paragraph in accordance with anyregulations made for that purpose.



Sch. 7(9) Regulations made under sub-paragraph (8) may include provision—

(a) for a determination of a higher court to be treated as if it had been madeon the date of a determination by a lower court or by aCommissioner; or

(b) for a determination of a lower court or of a Commissioner to be treatedas if it had been made on the date of a determination by a higher court.

Correction of errors and setting aside of decisions

19.—(1) Regulations may make provision with respect to—

(a) the correction of accidental errors in any decision or record of a decisionmade under or by virtue of any relevant provision; and

(b) the setting aside of any such decision in a case where it appears just toset the decision aside on the ground that—

(i) a document relating to the proceedings in which the decisionwas given was not sent to, or was not received at an appropriate timeby, a party to the proceedings or a party’s representative, or was notreceived at an appropriate time by the body or person who gave thedecision; or

(ii) a party to the proceedings or a party’s representative was notpresent at a hearing related to the proceedings.

(2) Nothing in sub-paragraph (1) shall be construed as derogating from anypower to correct errors or set aside decisions which is exercisable apart fromregulations made by virtue of that sub-paragraph.

(3) In this paragraph “relevant provision” means—

(a) any of the provisions of this Schedule;

(b) any of the provisions of Part VII of the Social Security Contributions1992 c. 4.and Benefits Act 1992 so far as they relate to housing benefit or counciltax benefit; or

(c) any of the provisions of Part VIII of the Administration Act or of anyregulations under section 2A of that Act, so far as the provisions orregulations relate to, or to arrangements for, housing benefit or counciltax benefit.

Regulations

20.—(1) The power to make regulations under this Schedule shall beexercisable—

(a) in the case of regulations with respect to proceedings before theCommissioners, by the Lord Chancellor; and

(b) in any other case, by the Secretary of State;

and the Lord Chancellor shall consult with the Scottish Ministers before makingany regulations under this Schedule that apply to Scotland.

(2) Any power conferred by this Schedule to make regulations shall includepower to make different provision for different areas or different relevantauthorities.

(3) Subsections (3) to (7) of section 79 of the Social Security Act 19981998 c. 14.(supplemental provision in connection with powers to make subordinatelegislation under that Act) shall apply to any power to make regulations underthis Schedule as they apply to any power to make regulations under that Act.

(4) A statutory instrument containing (whether alone or with otherprovisions) regulations under paragraph 6(2)(e) or (4) shall not be made unlessa draft of the instrument has been laid before Parliament and approved by aresolution of each House.



Sch. 7(5) A statutory instrument—

(a) which contains (whether alone or with other provisions) regulationsmade under this Schedule, and

(b) which is not subject to any requirement that a draft of the instrument belaid before and approved by a resolution of each House of Parliament,

shall be subject to annulment in pursuance of a resolution of either House ofParliament.

(6) In this paragraph the reference to regulations with respect to proceedingsbefore the Commissioners includes a reference to regulations with respect to anysuch proceedings for the determination of any matter, or for leave to appeal toor from the Commissioners.

Consequential amendments of the Administration Act

21.—(1) In section 5(1)(hh) of the Administration Act (regulations aboutclaims for and payments of benefit)—

(a) in sub-paragraph (i), after “1998” there shall be inserted “or, as the casemay be, under paragraph 3 of Schedule 7 to the Child Support,Pensions and Social Security Act 2000”; and

(b) in sub-paragraph (ii), after “Act” there shall be inserted “or, as the casemay be, paragraph 4 of that Schedule”.

(2) In section 6(1) of the Administration Act (regulations about claims for andpayments of council tax benefit), after paragraph (h) there shall be inserted—

“(hh) for requiring such person as may be prescribed in accordancewith the regulations to furnish any information or evidenceneeded for a determination whether a decision on an award of abenefit—

(i) should be revised under paragraph 3 of Schedule 7 to theChild Support, Pensions and Social Security Act 2000; or

(ii) should be superseded under paragraph 4 of thatSchedule;”.

Consequential amendments of the Social Security Act 1998

22.—(1) Section 34(4) and (5) and section 35 of the Social Security Act 1998 1998 c. 14.(regulations for the determination of claims and reviews of housing benefit andcouncil tax benefit and for the suspension of those benefits) shall cease to haveeffect.

(2) In paragraph 4(1)(a) of Schedule 1 to that Act (supplementary provisionsrelating to the appeal tribunals), for “or section 20 of the Child Support Act”there shall be substituted “, section 20 of the Child Support Act or paragraph 6of Schedule 7 to the Child Support, Pensions and Social Security Act 2000”.

(3) In paragraph 3(1) of Schedule 4 to that Act (provisions relating to theSocial Security Commissioners), after “section 14 of this Act” there shall beinserted “or under paragraph 8 of Schedule 7 to the Child Support, Pensions andSocial Security Act 2000”.’.

Interpretation

23.—(1) In this Schedule—

“the Administration Act” means the Social Security Administration Act 1992 c. 5.1992;

“affected” shall be construed subject to any regulations under sub-paragraph (2);

“appeal tribunal” means an appeal tribunal constituted under Chapter I ofPart I of the Social Security Act 1998;



Sch. 7“the Chief Commissioner” means the Chief Social Security Commissioner;

“Commissioner” means the Chief Commissioner or any other SocialSecurity Commissioner, and includes a tribunal of three or moreCommissioners constituted under paragraph 10(5);

“prescribed” means prescribed by regulations under this Schedule;

“relevant authority” has the meaning given by paragraph 1(1);

“relevant decision” has the meaning given by paragraph 1(2).

(2) Regulations may make provision specifying the circumstances in which aperson is or is not to be treated for the purposes of this Schedule as a person whois affected by any decision of a relevant authority.

(3) For the purposes of this Schedule any decision that is made or falls to bemade—

(a) by a person authorised to carry out any function of a relevant authorityrelating to housing benefit or council tax benefit, or

(b) by a person providing services relating to housing benefit or council taxbenefit directly or indirectly to a relevant authority,

shall be treated as a decision of the relevant authority on whose behalf thefunction is carried out or, as the case may be, to whom those services areprovided.


Declarations of status: consequential amendments

The Births and Deaths Registration Act 1953 (c.20)

1. In section 14A(1)(a) of the Births and Deaths Registration Act 1953 (re-registration of birth where notification of declaration of parentage given undersection 56(4) of the Family Law Act 1986), for “56(4)” there shall be substituted1986 c. 55.“55A(7) or 56(4)”.

The Magistrates’ Courts Act 1980 (c.43)

2.—(1) Section 65 of the Magistrates’ Courts Act 1980 (meaning of familyproceedings) shall be amended as follows.

(2) In subsection (1) (proceedings which are family proceedings), afterparagraph (m) there shall be inserted—

“(mm) section 55A of the Family Law Act 1986;”.

(3) In subsection (2) (power of court to treat combined proceedings as familyproceedings), in paragraph (e), before “section 20” there shall be inserted“proceedings under”.

The Family Law Act 1986 (c.55)

3. The Family Law Act 1986 shall be amended as follows.

4. In section 55 (declarations as to marital status)—

(a) in subsection (1), for “the court” there shall be substituted “the HighCourt or a county court”, and

(b) in subsection (3), after “made” there shall be inserted “to a court”.



Sch. 85. In section 56 (declarations as to legitimacy or legitimation)—

(a) in subsections (1) and (2), for “the court” there shall be substituted “theHigh Court or a county court”, and

(b) in subsection (4), after “made” there shall be inserted “by a court”.

6. In section 57(1) (application to the court for declaration as to overseasadoption), for “the court” there shall be substituted “the High Court or acounty court”.

7. In section 58 (general provisions)—

(a) in subsection (1), after “application” there shall be inserted “to acourt”, and

(b) in subsection (3), for “The” there shall be substituted “A”.

8. In section 59 (provisions relating to the Attorney-General)—

(a) in subsections (1) and (2), after “an application” there shall be inserted“to a court”, and

(b) in subsection (3), after “any application” there shall be inserted “to acourt”.

The Family Law Reform Act 1987 (c.42)

9. In section 23(1) of the Family Law Reform Act 1987—

(a) in subsection (2) to be substituted for section 20(2) of the Family Law 1969 c. 46.Reform Act 1969 (report to court about scientific tests), for “personresponsible for” there shall be substituted “individual”; and

(b) in subsection (2A) to be inserted in section 20 of that Act (blood tests inproceedings under section 56 of the Family Law Act 1986), for “56” 1986 c. 55.there shall be substituted “55A or 56”.

The Children Act 1989 (c.41)

10.—(1) Part I of Schedule 11 to the Children Act 1989 (jurisdiction) shall beamended as follows.

(2) In paragraph 1(2A) (additional proceedings which may be required to becommenced in a particular court)—

(a) for paragraph (a) there shall be substituted—

“(a) under section 55A of the Family Law Act 1986 (declarations ofparentage); or”, and

(b) in paragraph (b), for “of that Act” there shall be substituted “of theChild Support Act 1991”. 1991 c. 48.

(3) In paragraph 2(3) (power to transfer certain proceedings)—

(a) after paragraph (b) there shall be inserted—

“(ba) any proceedings under section 55A of the Family Law Act1986”, and

(b) in paragraph (bb), before “section 20” there shall be inserted “anyproceedings under”.


11. The Child Support Act 1991 shall be amended as follows.



Sch. 812. In section 26(2) (cases where Secretary of State may make maintenance

calculation despite denial of parentage), in Case C (where there has been adeclaration under section 56 of the Family Law Act 1986), after “section” there1986 c. 55.shall be inserted “55A or”.

13. For section 27 (declarations of parentage) there shall be substituted—

“Applications for 27.—(1) This section applies where—declaration of

(a) an application for a maintenance calculation has beenparentage undermade (or is treated as having been made), or aFamily Law Actmaintenance calculation is in force, with respect to a1986.person (“the alleged parent”) who denies that he is aparent of a child with respect to whom the applicationor calculation was made or treated as made;

(b) the Secretary of State is not satisfied that the case fallswithin one of those set out in section 26(2); and

(c) the Secretary of State or the person with care makes anapplication for a declaration under section 55A of theFamily Law Act 1986 as to whether or not the allegedparent is one of the child’s parents.

(2) Where this section applies—

(a) if it is the person with care who makes the application,she shall be treated as having a sufficient personalinterest for the purposes of subsection (3) of thatsection; and

(b) if it is the Secretary of State who makes theapplication, that subsection shall not apply.

(3) This section does not apply to Scotland.”

14. In section 27A(2)(b) (Secretary of State to recover fees for scientific tests ifa court has made a declaration of parentage under section 27), for “section 27”there shall be substituted “section 55A of the Family Law Act 1986”.

The Access to Justice Act 1999 (c.22)

15. In Schedule 2 to the Access to Justice Act 1999 (services which are not tobe funded as part of community legal services), in paragraph 2(3), afterparagraph (d) there shall be inserted—

“(da) under section 55A of the Family Law Act 1986 (declarations ofparentage),”.


Repeals and revocations

Part I

Child support

Chapter or Citation Extent of repeal ornumber revocation

10 & 11 Geo. 6 The Naval Forces In section 1(1), paragraphc. 24. (Enforcement of (aaa).

Maintenance Liabilities)Act 1947.



Sch. 9

Chapter or num- Citation Extent of repeal or revoca-ber tion

3 & 4 Eliz. 2 c. 18. The Army Act 1955. In section 150A, insubsection (2), paragraph(b) and the word “or”preceding it, and insubsection (3), the words“or cancels” and “or (asthe case may be) that ithas been cancelled”.

3 & 4 Eliz. 2 c. 19. The Air Force Act 1955. In section 150A, insubsection (2), paragraph(b) and the word “or”preceding it, and insubsection (3), the words“or cancels” and “or (asthe case may be) that ithas been cancelled”.

1973 c. 18. The Matrimonial Causes In section 29, in subsectionAct 1973. (7), the words “or is

cancelled”, “or wascancelled” and “or, as thecase may be, the date witheffect from which it wascancelled”; and insubsection (8), paragraph(b) and the word “and”preceding it.

1978 c. 22. The Domestic Proceedings In section 5, in subsectionand Magistrates’ Courts (7), the words “or isAct 1978. cancelled”, “or was

cancelled” and “or, as thecase may be, the date witheffect from which it wascancelled”; and insubsection (8), paragraph(b) and the word “and”preceding it.

1989 c. 41. The Children Act 1989. In Schedule 1, in paragraph3(7), the words “or iscancelled”, “or wascancelled” and “or, as thecase may be, the date witheffect from which it wascancelled”; and inparagraph 3(8),paragraph (b) and theword “and” preceding it.

1991 c. 48. The Child Support Act 1991. In section 15(10), thedefinition of “specified”and the preceding word“and”.

In section 17(1), the word“and” after paragraph(b).

In section 28D(2)(a),“lapsed or”.

Sections 28H and 28I.Section 40(1) and (2).



Sch. 9

Chapter or num- Citation Extent of repeal or revoca-ber tion

1991 c. 48.— The Child Support Act Section 41(3) to (5).Contd. 1991.—Contd. Section 44(3).

Section 46B(3).In section 54, the definitions

of “assessable income”,“current assessment”,“departure direction” and“maintenance requirement”.

In Schedule 1, paragraph 13,and in paragraph 16, sub-paragraph (1)(d) and (e),sub-paragraphs (2) to (9),and in sub-paragraph (10)the words “, or should becancelled”.

Schedule 4C.

1992 c. 5. The Social Security In section 170(5), in theAdministration Act 1992. definition of “the relevant

enactments”, paragraph(ab).

1992 c. 6. The Social Security In Schedule 2, paragraph(Consequential 113.Provisions) Act 1992.

1995 c. 18. The Jobseekers Act 1995. In Schedule 2, paragraph20(2), (4) and (7).

1995 c. 34. The Child Support Act 1995. Sections 1, 2 and 3.Sections 6, 7, 8, 9, 10 and 11.Section 14(2) and (3).Section 18(3) and (5).Section 19.Section 22.Section 24.Section 26(4)(c).Schedules 1 and 2.In Schedule 3, paragraphs

12, 15 and 20(a).

1998 c. 14. The Social Security Act Section 42.1998. In Schedule 7, paragraphs

20, 24, 25, 28, 34, and 35;in paragraph 36, thewords “(1) and”; andparagraphs 37, 38, 39, 40,43, 46, 48(1), (2), (3) and(5)(a), (b) and (c), 53 and54.

S.I. 1998/2780 The Social Security Act 1998 Article 3(4).(C.66). (Commencement No. 2)

Order 1998.

1999 c. 10. The Tax Credits Act 1999. In Schedule 1, paragraph6(i).

In Schedule 2, paragraph17(a).



Sch. 9Part II

State pensions

Chapter Short title Extent of repeal

1999 c. 30. The Welfare Reform and In Schedule 8, paragraphPensions Act 1999. 5(b) and the word “and”

immediately preceding it.

Part III

Occupational and personal pension schemes

(1) Member-nominated trustees and directors


1995 c. 26. The Pensions Act 1995. In section 16(1), the words“(subject to section 17)”and in paragraph (b), thewords “, and theappropriate rules,”.

Section 17.In section 18(1), the words

“, subject to section 19,”and in paragraph (b), thewords “, and theappropriate rules,”.

Sections 19 and 20.In section 21—

(a) in subsections (1) and(2), the words “, or theappropriate rules,”;

(b) in subsection (3), thewords “or rules”;

(c) in subsection (4), thewords “(or furtherarrangements)” inparagraph (a), andparagraph (b) and theword “and”immediately precedingit;

(d) subsection (5);

(e) in subsection (7), thewords “and thissection”, paragraph (b)and the word “and”immediately precedingparagraph (b); and

(f) in subsection (8),paragraph (b) and theword “and”immediately precedingit.



Sch. 9


1999 c. 30. The Welfare Reform and In Schedule 12, paragraphsPensions Act 1999. 46 and 48 and in

paragraph 49, sub-paragraph (b) and theword “and” immediatelypreceding it.

(2) Information to be given to the authority


1993 c. 48. The Pension Schemes Act In section 178(a), the words1993. “sections 22 to 26 of the

Pensions Act 1995”.

1995 c. 26. The Pensions Act 1995. In Schedule 3, paragraph 43.

(3) The Pensions Ombudsman


1993 c. 48. The Pension Schemes Act In section 146—1993. (a) in subsection (1)(c), the

words “which arises”and the words from“and which” to“beneficiary, and”;

(b) in subsection (1)(d),the words “whicharises”; and

(c) subsection (3A).

1995 c. 26. The Pensions Act 1995. Section 157(7).

(4) Guaranteed minimum for widows and widowers


1993 c. 48. The Pension Schemes Act In section 17(5), the words1993. “Category B retirement

pension,”, in the firstplace where they occur,and the words from “orfor which” onwards.



Sch. 9

(5) Protected rights


1995 c. 26. The Pensions Act 1995. In Schedule 5, paragraph34(a).

(6) Contributions equivalent premiums


1995 c. 26. The Pensions Act 1995. In Schedule 5, paragraph57(a)(ii).

S.I. 1995/3213 The Pensions (Northern In Schedule 3, paragraph(N.I. 22). Ireland) Order 1995. 49(a)(ii).

(7) Use of cash equivalent


1993 c. 48. The Pension Schemes Act Section 95(4).1993.

(8) Transfer values


1993. c. 48. The Pension Schemes Act Section 98(7)(a).1993.

Sub-paragraph (4) of paragraph 8 of Schedule 5 to this Act has effect inrelation to this repeal as it has effect in relation to sub-paragraph (2) of thatparagraph.

(9) Information about contracting-out


1999 c. 2. The Social Security In Schedule 1, paragraph 60.Contributions (Transferof Functions, etc.) Act1999.



Sch. 9

(10) Duties relating to statements of contributions


1995 c. 26. The Pensions Act 1995. In section 49(10), the word“and” at the end ofparagraph (a).

(11) Spent provisions


1993 c. 48. The Pension Schemes Act Section 56(5).1993.

1993 c. 49. The Pension Schemes Section 52(5).(Northern Ireland) Act1993.

Part IV

War pensions


6 & 7 Geo. 6. c. The Pensions Appeal In section 8, in subsection39. Tribunals Act 1943. (1), the words from

“Provided” to the end,subsection (2) and, insubsection (3), the wordsfrom “Provided” to theend.

12, 13 & 14 The Pensions Appeal Section 1(2).Geo. 6. c. 12. Tribunals Act 1949. Section 2.

1990 c. 41. The Courts and Legal In Schedule 10, paragraph 5.Services Act 1990.

1995 c. 26. The Pensions Act 1995. Section 169(6).

Part V

Loss of benefit


1998 c. 14. The Social Security Act In Schedule 3, in paragraph1998. 3, the word “or” at the end

of sub-paragraph (c).



Sch. 9Part VI

Investigation powers


1992 c. 5. The Social Security Section 111A(2).Administration Act 1992. Section 112(3).

1993 c. 48. The Pension Schemes Act In Schedule 8, paragraph 26.1993.

1995 c. 18. The Jobseekers Act 1995. Section 33.Section 34(2), (3) and (5) to (7).In Schedule 2, paragraph 54.

1995 c. 26. The Pensions Act 1995. In Schedule 5, paragraph15(2).

1997 c. 27. The Social Security In Schedule 3, paragraph 4.(Recovery of Benefits)Act 1997.

1997 c. 47. The Social Security Section 12.Administration (Fraud) In Schedule 1, paragraphAct 1997. 4(4).

1999 c. 2. The Social Security In Schedule 5, paragraph 2.Contributions (Transferof Functions, etc.) Act1999.

1999 c. 10. The Tax Credits Act 1999. In Schedule 2, paragraphs11(a), 13(a) and 14(a).

1999 c. 30. The Welfare Reform and In Schedule 8, paragraphPensions Act 1999. 34(2)(a).

Part VII

Housing Benefit and Council Tax Benefit


1998 c. 14. The Social Security Act 1998. In section 34, subsections (4)and (5).

Section 35.

Part VIII

NICs in respect of benefits in kind

(1) Great Britain


1992 c. 4. The Social Security In section 1(2)(b), the wordsContributions and “in respect of cars madeBenefits Act 1992. available for private use

and car fuel”.In Schedule 1, paragraphs

3(2) and 8(1)(i).



Sch. 9


1998 c. 14. The Social Security Act Section 50(2).1998. Section 52.

In Schedule 7, paragraph 58.

1999 c. 2. The Social Security In section 8(1), paragraphContributions (Transfer (j), and in paragraph (l),of Functions, etc.) Act the words “amount of1999. interest or”.

In Schedule 1, paragraph19(2).

In Schedule 3, paragraph 10.

1. These repeals (except the repeals in section 8(1) of the Social SecurityContributions (Transfer of Functions, etc.) Act 1999) have effect in relation tothe tax year beginning with 6th April 2000 and subsequent tax years.

2. The repeals in section 8(1) of the Social Security Contributions (Transfer ofFunctions, etc.) Act 1999 have effect in accordance with section 76(7) of this Act.

(2) Northern Ireland


1992 c. 7. The Social Security In section 1(2)(b), the wordsContributions and “in respect of cars madeBenefits (Northern available for private useIreland) Act 1992. and car fuel”.

In Schedule 1, paragraphs3(2) and 8(1)(i).

S.I. 1998/1506 The Social Security Article 47(2).(N.I. 10). (Northern Ireland) Order Article 49.

1998. In Schedule 6, paragraph 40.

S.I. 1999/671. The Social Security In Article 7(1), sub-Contributions (Transfer paragraph (j), and in sub-of Functions, etc.) paragraph (l), the words(Northern Ireland) Order “amount of interest or”.1999. In Schedule 1, paragraph

22(2).In Schedule 3, paragraph 11.

1. These repeals (except the repeals in Article 7(1) of the Social SecurityContributions (Transfer of Functions, etc.) (Northern Ireland) Order 1999) haveeffect in relation to the tax year beginning with 6th April 2000 and subsequenttax years.

2. The repeals in Article 7(1) of the Social Security Contributions (Transfer ofFunctions, etc.) (Northern Ireland) Order 1999 have effect in accordance withsection 80(7) of this Act.



Sch. 9Part IX

Tests for determining parentage and declarations of status


1968 c. 63. The Domestic and Appellate In section 2, subsectionProceedings (Restriction (1)(e) and, in subsectionof Publicity) Act 1968. (3), the words “or (e)”.

1968 c. 64. The Civil Evidence Act In section 12(5), in the1968. definition of “relevant

proceedings”, paragraph(d).

1980 c. 43. The Magistrates’ Courts In section 65(1)(o) andAct 1980. (2)(e), the words “or

section 27”.

1986 c. 55. The Family Law Act 1986. Section 56(1)(a).Section 58(5)(b).Section 63.

1987 c. 42. The Family Law Reform In paragraph 19(a) ofAct 1987. Schedule 2, the words

from “and there” to theend.

1989 c. 41. The Children Act 1989. Section 89.In Schedule 11, in

paragraphs 1(3)(bb) and2(3)(bb), the words from“or 27” to “parentage)”.

1990 c. 41. The Courts and Legal In Schedule 16, paragraph 3.Services Act 1990.

1991 c. 48. The Child Support Act 1991. In section 26(2), Case D.

1995 c. 34. The Child Support Act 1995. In section 20, subsections (1)to (4).

1998 c. 14. The Social Security Act In Schedule 7, paragraph 32.1998.

1999 c. 22. The Access to Justice Act In Schedule 2, in paragraph1999. 2(3)(g), the words “or 27”.

? Crown copyright 2000

Printed in the UK by The Stationery Office Limitedunder the authority and superintendence of Carol Tullo, Controller ofHer Majesty’s Stationery Office and Queen’s Printer of Acts of Parliament

Documents

Child Support, Pensions and Social Security Act 2000 · Child Support, Pensions and Social Security Act 2000 c. 19 iii Chapter II Occupational and Personal Pension Schemes Selection